Addressing the immediate question of why the cryptocurrency market is sliding, Bitcoin dropped 6% to slip below $76,000. This decline followed a Wall Street semiconductor stock crash on Thursday, November 5, which liquidated $1.03 billion in leveraged positions and resulted in $430 million leaving Bitcoin ETFs. The downward pressure persisted overnight.
On Binance, Bitcoin changed hands at roughly $75,700 during Friday morning trading, retreating from $80,547 at the opening of Thursday. Meanwhile, Ethereum declined 8.2% to $2,218, XRP dropped 9.7% to $1.18, and Solana decreased 6.9% to $89.22. Additionally, the Crypto Fear & Greed Index slid to 28, entering “Fear” territory from a neutral rating of 50 the previous day.
Equities served as the primary catalyst. The Philadelphia Semiconductor Index plunged 12.2% at the close, with index components Nvidia and AMD shedding 9.3% and 17.3% respectively, while the Nasdaq dropped 5.5%. Digital asset equities fell alongside them, as Strategy dropped 9.3% and Coinbase fell 9.7%.
The sequence of events raises questions regarding how a conventional tech sell-off transformed into a digital asset downturn, and where Bitcoin might establish a price floor.
Today was a 4σ day for equities. The S&P 500 fell 4.4% and the Nasdaq fell 5.5%, a decline seen roughly once every 19 months. Bitcoin fell about 5%. $STRC closed at $99.56, just 44 cents below par.
— Michael Saylor (@saylor) November 5, 2026
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Why Is Crypto Down Today? A Chip Sell-Off Meets Leverage
As Wall Street opened at 14:30 UTC, Bitcoin began breaking downward within the hour. On Binance, the 15:00 UTC candle descended from $78,288 to $75,568 during the session’s peak trading hour, which recorded $513 million in volume.
Market reporting from Yahoo Finance connected the equity rout to the Democratic Party’s definitive midterm election victory, and the potential implications for artificial intelligence infrastructure spending and regulatory oversight. Semiconductor manufacturers, which had been the primary beneficiaries of the AI rally, suffered the most severe losses.
Excessive leverage exacerbated the decline. Data from CoinGlass registered $1.03 billion in liquidations over a 24-hour period—positions forcibly closed after margins were exhausted. Long positions accounted for $924.94 million, or 89.4% of the total, impacting 199,365 traders.
Specifically, Bitcoin long positions sustained $255.88 million in losses, while Ether longs lost $163.83 million. The single largest individual liquidation was a $10.94 million ETHUSDT position on Binance.
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How Much Did Bitcoin ETFs Lose?
United States spot Bitcoin exchange-traded funds registered $430.2 million in net outflows on Thursday, with zero inflows recorded across all 12 participating funds. Data from SoSoValue’s ETF tracker indicated that Fidelity’s FBTC experienced the highest outflows at $199.87 million, followed by BlackRock’s IBIT at $104.97 million.
Grayscale’s GBTC lost $49.90 million, Franklin Templeton’s EZBC $32.92 million, VanEck’s HODL $23.64 million and ARKB $18.90 million.
This single session completely erased the gains from Wednesday, when the funds had attracted $74.6 million—marking the sole day of net inflows for the month. Over the first four trading days of November, total outflows have reached $869.8 million, building on the $515.9 million withdrawn during October.
The activity surrounding Fidelity’s fund remains a key indicator to monitor. FBTC absorbed $236.7 million on Wednesday while IBIT experienced outflows, only to reverse course and surrender the majority of those gains a day later.
BTC Price Analysis: Bitcoin Loses Its 200-Day EMA
Bitcoin concluded Thursday’s session at $76,088, positioning itself just beneath its 200-day exponential moving average of $76,536. That moving average had previously functioned as a reliable support level throughout the pullbacks seen in October.
Conversely, the 50-day EMA at $79,822 now rests above the current spot price, with the $81,971 high established prior to the previous week’s Binance security breach serving as the subsequent resistance level.
Looking downward, the initial support level is marked by the swing low at $74,968. Beyond that, the 50% Fibonacci retracement level originating from the July-to-September recovery stands at $72,598.
BTCUSDT 1D chart. Source: TradingView
| Outlook | Trigger | Level to watch |
|---|---|---|
| Rebound | A daily close back above $76,536, the 200-day EMA | $79,822, the 50-day EMA |
| Holding pattern | Holding between $74,968 and $76,536 | A tight range under the 200-day EMA |
| Sell-off | A daily close below $74,968 | $72,598, the 50% Fibonacci level |
One important nuance is that funding rates on Bitcoin perpetual contracts remain mildly positive on OKX, suggesting that bullish traders have not been completely flushed out despite the billion-dollar liquidation event.
For market participants inquiring about the reasons behind the current downturn, the core driver remains tied to the Nasdaq. Should semiconductor equities stabilize upon Friday’s New York market open, Bitcoin stands a chance at reclaiming its 200-day moving average. If they fail to steady, the $74,968 threshold will act as the dividing line between a routine correction day and a more extended downward phase.
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