Bitcoin Price Crashes Over 5% as Tech Selloff Triggers Leveraged Liquidations

The Bitcoin price today experienced a sharp decline, falling from levels above $80,800 to near $76,000 on Thursday morning. This downward movement followed a significant selloff in the Nasdaq Composite, which saw technology and artificial intelligence-related stocks tumble as investors reacted to shifting political landscapes and economic data. The market reversal erased gains from an overnight rally that had pushed the cryptocurrency past $80,500.

A sharp selloff in technology stocks spilled into crypto, wiping out hundreds of millions in leveraged positions.

Market volatility and liquidations

The volatility was driven by a broader retreat on Wall Street, where the Nasdaq Composite fell by as much as 3.9%, entering correction territory. AI-focused companies faced heavy selling pressure; Nvidia, Broadcom, and Tesla saw significant losses, while smaller cloud-related firms experienced double-digit percentage drops. As the tech-heavy complex faltered, Bitcoin—which has traded in correlation with these assets throughout the year—faced immediate downward pressure.

Leverage intensified the decline. As the price broke through the $77,000 support level, approximately $370 million to $400 million in leveraged crypto positions were liquidated within an hour, the vast majority being long bets. The selling pressure originated in Asia, where the South Korean Kospi index closed down more than 5% as major semiconductor manufacturers saw their valuations sink. Meanwhile, U.S. market data showed that over $1 trillion in value was shed within minutes of the opening bell.

Economic indicators and policy shifts

Macroeconomic conditions offered little stability, as initial jobless claims fell to 189,000, a level not seen since 1969. This tight labor market suggests the Federal Reserve may have limited room to ease policy. Furthermore, investors are pricing in potential legislative changes following U.S. midterm results, with concerns mounting over possible restrictions on data center expansion. Analysts at UBS have noted that a significant portion of planned U.S. data center capacity through 2028 could face construction delays due to these political risks. Traders are now closely monitoring whether Bitcoin can maintain support around the $75,000 level, a threshold that has held firm since August.

Why it matters

The current market turbulence highlights the growing institutional entanglement between Bitcoin, AI infrastructure, and broader tech equities. Because many Bitcoin miners now operate as part of the AI data center ecosystem, they are increasingly exposed to the same political and regulatory risks as tech giants. For investors in India and South Asia, this underscores how global liquidity and U.S. policy decisions continue to dictate price action across digital asset markets, regardless of local sentiment.