Bitcoin climbed above $76,000 again on Friday after briefly dropping below the level during Thursday’s technology-led market sell-off.

The leading cryptocurrency recovered the key price mark after experiencing heavy selling during Thursday’s U.S. session. The decline erased Wednesday’s post-election gains as spot Bitcoin ETFs recorded substantial withdrawals and falling technology stocks weakened appetite for riskier investments.

Despite bouncing back, BTC remains more than 5.3% lower over the past 24 hours. The broader CoinDesk 20 (CD20) index also posted a 6.28% loss during the same period.

SoSoValue data revealed that U.S.-listed spot Bitcoin ETFs recorded $430.2 million in net outflows on Thursday. Fidelity’s FBTC experienced withdrawals of $199.9 million, while BlackRock’s IBIT registered $105 million in outflows.

These withdrawals reversed Wednesday’s $74.6 million in net inflows, pushing total weekly redemptions through Thursday to $869.8 million.

Bitcoin’s decline occurred alongside a broader retreat in U.S. stock markets. The Nasdaq dropped 5.5%, while the S&P 500 lost 4.3% during Thursday’s trading session. Analysts from FalconX and GSR linked the downturn to concerns that Democrats’ midterm election victory could delay AI data center construction. Such delays could intensify doubts about whether the massive investments in AI infrastructure will generate sufficient returns.

Bitcoin Faces Additional Pressure From $1.26B Crypto Liquidations

Selling pressure intensified as leveraged traders faced widespread liquidations across cryptocurrency markets. According to CoinGlass, approximately $1.26 billion in crypto positions were forcibly closed over 24 hours, including $1.12 billion in long positions.

The figures highlight how traders betting on rising cryptocurrency prices were disproportionately affected by Thursday’s market reversal.

Weakness across traditional equities is also spreading into digital assets. Investment managers are reportedly selling alternative investments to raise liquidity, cover margin requirements and reduce leverage throughout their portfolios.

Simon-Peter Massabni, head of business development at broker XS.com, said the stock market downturn was encouraging asset managers to liquidate alternative holdings to meet margin calls and reduce portfolio exposure.

Bitcoin’s previous recovery had already raised questions about the strength of underlying demand. Futures open interest remained relatively stable during Wednesday’s rebound, suggesting that traders were not adding significant new leveraged positions.

Furthermore, BTC traded at a lower price on Coinbase than on Binance. This premium reversal pointed to limited buying interest from U.S. investors and suggested that domestic demand was not strong enough to support the recovery.