Why is crypto down today? Bitcoin tumbled below $76,000 as a sharp semiconductor stock selloff triggered $1.03 billion in liquidations and caused $430 million in Bitcoin ETF outflows.

Bitcoin lost around 6% on Thursday, November 5, as a broad Wall Street selloff spilled into the cryptocurrency market. The decline pushed BTC beneath the $76,000 level, forced the liquidation of more than $1 billion in leveraged positions and accelerated withdrawals from U.S. spot Bitcoin ETFs. Selling pressure remained elevated into Friday morning.

Bitcoin traded near $75,700 on Binance during Friday’s early session, down from $80,547 at the beginning of Thursday. Ethereum dropped 8.2% to $2,218, XRP declined 9.7% to $1.18, and Solana fell 6.9% to $89.22. Investor sentiment also weakened, with the Crypto Fear & Greed Index sliding to 28 from 50 a day earlier, signaling “Fear” across the market.

The broader equity market downturn was a key driver of the crypto selloff. The Philadelphia Semiconductor Index closed 12.2% lower, while Nvidia and AMD shares plunged 9.3% and 17.3%, respectively. The Nasdaq Composite recorded a 5.5% decline. Crypto-related stocks also moved lower, with Strategy losing 9.3% and Coinbase falling 9.7%.

The combination of technology sector weakness, leveraged positions and ETF withdrawals intensified the decline. Market participants are now assessing whether Bitcoin can hold its current support levels or face further downside.

Why Is Crypto Down Today? Chip Stocks Crash as Bitcoin Liquidations Accelerate

Bitcoin’s selloff gained momentum after U.S. markets opened at 14:30 UTC. Within an hour, BTC experienced a sharp breakdown. The 15:00 UTC Binance candle declined from $78,288 to $75,568, recording the day’s highest trading activity with $513 million in volume.

Yahoo Finance’s market coverage connected the stock market decline to the Democrats’ decisive midterm victory and its potential implications for AI infrastructure investment and regulatory policy. Semiconductor companies, which had been major beneficiaries of the artificial intelligence investment boom, faced particularly severe selling pressure.

Excessive leverage further intensified Bitcoin’s losses. CoinGlass data showed that $1.03 billion in positions were liquidated over 24 hours as exchanges automatically closed trades after margin requirements were breached. Long positions accounted for $924.94 million, or 89.4% of the total, affecting 199,365 traders.

Bitcoin long positions recorded $255.88 million in liquidations, while Ether longs suffered $163.83 million in forced closures. The largest individual liquidation was a $10.94 million ETHUSDT position on Binance.

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Bitcoin ETF Outflows Reach $430.2 Million

U.S. spot Bitcoin ETFs recorded $430.2 million in net outflows on Thursday, with none of the 12 funds attracting fresh capital. According to SoSoValue, Fidelity’s FBTC led the withdrawals with $199.87 million, while BlackRock’s IBIT followed with $104.97 million in outflows.

The latest withdrawals reversed the previous session’s gains. Bitcoin ETFs received $74.6 million in net inflows on November 4, which was the only positive-flow day recorded so far this month.

November’s first four trading sessions have now generated $869.8 million in cumulative outflows. This follows $515.9 million in withdrawals during October, highlighting continued pressure on institutional Bitcoin investment products.

Fidelity’s fund activity was particularly notable. FBTC attracted $236.7 million on Wednesday as BlackRock’s IBIT experienced outflows. However, Fidelity’s fund gave back a significant portion of those inflows during Thursday’s session.

BTC Price Analysis: Bitcoin Loses Its 200-Day EMA Support

Bitcoin closed Thursday at $76,088, falling below its 200-day exponential moving average (EMA), which stood at $76,536. The indicator had previously acted as a support level during the October correction.

Bitcoin’s 50-day EMA at $79,822 now represents an important resistance barrier. A recovery above this level could bring the $81,971 high recorded before last week’s Binance hack back into focus.

On the downside, the $74,968 swing low is the first major support level to monitor. If Bitcoin breaks below this zone, the next potential downside target lies at $72,598, corresponding to the 50% Fibonacci retracement of the July-to-September rally.

Despite the substantial liquidation event, Bitcoin perpetual futures funding rates on OKX remain slightly positive. This suggests that some leveraged bullish positions remain in the market, potentially leaving BTC vulnerable to additional liquidations if selling pressure intensifies.

The latest cryptocurrency decline is primarily tied to the Nasdaq’s weakness and the sharp selloff in semiconductor stocks. A stabilization in technology shares when U.S. markets reopen on Friday could help Bitcoin recover above its 200-day EMA.

Conversely, continued losses across chip stocks could push Bitcoin toward the $74,968 support level. A decisive breakdown below that threshold could deepen the correction toward $72,598, making the next market session critical for BTC’s short-term direction.