Bitcoin Slides to $75K as AI Selloff Triggers $1.25B in Crypto Liquidations: What It Means for You

Disclosure: This article contains affiliate links. As an Amazon Associate, Daily Crypto Hub earns from qualifying purchases at no extra cost to you.

Bitcoin gave back most of its post-election bounce in a single day. After peaking a little above $80,700 on Thursday, November 5, BTC slid to roughly $75,350–$75,650 by early Friday, November 6, according to CoinGecko-based reports, before CoinDesk reported it climbing back above $76,000. The move was not driven by anything happening inside crypto. It followed one of the worst days for U.S. technology stocks in more than a year, and leveraged traders paid the price, with roughly $1.25 billion in crypto positions liquidated over 24 hours.

This article breaks down what actually happened, why an AI-stock selloff dragged Bitcoin down with it, what the liquidation and ETF numbers tell us, and what a calm, practical response looks like if you hold crypto.

What happened: the numbers in one place

• Bitcoin: Down about 6% over 24 hours, trading near $75,600 early Friday UTC with a market cap of roughly $1.52 trillion, per CoinGecko data cited by CoinGabbar. That leaves BTC around 40% below its CoinGecko all-time high of $126,080.
• Ether: Down close to 8%, trading around $2,230.
• Other large caps: DailyCoin, citing CoinGecko, reported XRP down 8.7% and Solana down 6.4% over the same period.
• Total market: Nearly $150 billion was wiped off the total crypto market cap in 24 hours, leaving it near $2.65 trillion. Bitcoin dominance sat around 57%.
• Liquidations: CoinGlass data reported by CoinDesk showed $1.26 billion in leveraged positions liquidated over 24 hours, about $1.12 billion of them longs.
• ETF flows: U.S. spot Bitcoin ETFs saw $430.2 million in net outflows on Thursday, according to SoSoValue data. Fidelity’s FBTC led with about $199.9 million out, followed by BlackRock’s IBIT with about $105 million.
• Sentiment: The Alternative.me Crypto Fear & Greed Index dropped to 28 (Fear) from 50 (Neutral) a day earlier.

Why a tech-stock selloff hit Bitcoin

The trigger was on Wall Street. On Thursday the Nasdaq Composite fell about 5.5%, its worst session since April 2025, and the S&P 500 dropped about 4.3%. DailyCoin reported that U.S. stocks lost roughly $2.5 trillion in value on the day, and South Korea’s Kospi fell nearly 9% at Friday’s open, triggering a 20-minute trading halt.

The story behind the stock drop is about artificial intelligence spending. Analysts at FalconX and GSR, quoted by CoinDesk, tied the selloff to worries that the Democrats’ midterm sweep could slow the construction of AI data centers, alongside lingering doubts about whether the enormous infrastructure spending will actually pay off. DailyCoin pointed specifically to Texas, where Governor-elect Gina Hinojosa has proposed pausing new data center construction until stronger protections are in place, a proposal that raised questions about large planned investments from companies such as Google, Meta, Oracle and OpenAI. That proposal is not law, but markets priced in the uncertainty quickly.

We looked at the political side of the election results in our analysis of what the Democratic sweep means for crypto, the CLARITY Act and regulators. This week’s price action is a reminder that elections can move crypto through indirect channels too, not just through crypto-specific policy.

The “risk asset” link

Bitcoin is often described as digital gold, but in short-term trading it still tends to move with high-growth, high-risk assets. When big institutional portfolios take losses in tech stocks, they often reduce risk everywhere at once. Simon-Peter Massabni of XS.com told CoinDesk that asset managers were selling alternative holdings to meet margin calls and cut leverage. In plain terms: when funds need cash fast, they sell what is liquid, and Bitcoin trades around the clock.

How liquidations turned a dip into a drop

Liquidations explain why the move was so sharp. When a trader borrows to make a bigger bet (leverage), the exchange sets a price at which the position is automatically closed if it moves too far against them. When many traders are long with leverage and price falls, those automatic closes become forced selling, which pushes price lower, which triggers the next batch of liquidations.

That is why roughly 89% of Thursday’s liquidated value was on the long side. It also explains why the bounce afterward was modest: CoinDesk noted that Bitcoin futures open interest stayed roughly flat during Wednesday’s rebound and that BTC traded at a discount on Coinbase compared with Binance, both signs that fresh U.S. buying demand was thin going into the selloff.

We saw a smaller version of this pattern in early October, when more than $550 million in liquidations pushed Bitcoin to $84K. Thursday’s wipeout was more than twice that size.

What the ETF outflows tell us

Spot Bitcoin ETFs are now one of the clearest windows into how traditional investors feel about BTC. Thursday’s $430.2 million outflow reversed a $74.6 million inflow from Wednesday, and CoinDesk reported net redemptions of about $869.8 million for the week through Thursday. One day of outflows is not a trend on its own, but a week of net selling shows that some institutional money is stepping back while broader markets are shaky.

There is a counterpoint in on-chain data. DailyCoin reported that investors withdrew about 17,599 BTC from exchanges over the past seven days. Coins leaving exchanges are often (though not always) moving to self-custody for longer-term holding rather than being lined up for sale.

What this means for you

If you hold crypto, a 6% one-day drop is uncomfortable but not unusual for this asset class. The most useful reaction is usually a checklist, not a trade:

1. Check your leverage first. If you trade with borrowed money, know your liquidation price. A large share of Thursday’s losses came from leveraged longs, not from people who simply held spot Bitcoin.
2. Revisit your position size. If a move like this makes you lose sleep, your allocation may be larger than your risk tolerance. That is a planning issue, not a market-timing one.
3. Stick to a plan if you’re buying. Many long-term holders use dollar-cost averaging to avoid trying to pick bottoms. Our free DCA calculator lets you model how regular buys would have performed over different periods.
4. Review where your coins are stored. Volatile days are when exchanges get busy and scammers get active. If you’re holding long term, consider whether self-custody fits you; our exchange vs. hot wallet vs. cold wallet checker walks through the trade-offs.
5. Ignore “buy the dip now” and “crash incoming” calls from strangers. Nobody knows the next move. Be especially wary of DMs offering recovery or guaranteed-return schemes after a big drop.

What to watch next

• The October U.S. jobs report: Scheduled for Friday, November 6, at 8:30 a.m. ET. A weak or strong number could shift expectations for the Federal Reserve, which matters for all risk assets.
• The Fed’s December meeting: After the October hold with two dissents favoring a hike, which we covered in our Fed decision breakdown, rate expectations remain a key driver.
• Tech and AI stocks: Whether the Nasdaq stabilizes will likely matter more for Bitcoin in the short run than any crypto-specific headline.
• Texas data center policy: Any concrete steps on the proposed pause could keep AI-related stocks volatile.
• ETF flows: A return to daily inflows would suggest institutional buyers see value at these levels; continued redemptions would suggest otherwise.
• Treasury yields: Investors bought government bonds during the selloff, and DailyCoin reported the 10-year yield fell to about 4.84%, its lowest in two months.

Frequently asked questions

Why did Bitcoin drop on November 6, 2026?

Mainly because of a sharp selloff in U.S. tech stocks. The Nasdaq fell about 5.5% on November 5 amid worries that AI data center spending could slow after the midterm elections. Crypto followed, and about $1.25 billion in leveraged liquidations made the move sharper.

What is a crypto liquidation?

A liquidation happens when an exchange automatically closes a leveraged trade because losses have eaten through the trader’s collateral. Large waves of long liquidations add forced selling to a falling market, which can accelerate a drop.

Are Bitcoin ETF outflows a bad sign?

They show that some ETF investors are reducing exposure. Thursday’s $430.2 million outflow and the week’s net redemptions point to cautious institutional sentiment, but flows can reverse quickly and one week does not define a trend.

Is Bitcoin still correlated with tech stocks?

In short-term moves, often yes. This week showed BTC falling alongside the Nasdaq as investors cut risk across portfolios. Over longer periods the relationship varies, so it’s not a fixed rule.

Should I sell my crypto after a drop like this?

We can’t give personal financial advice. In general, decisions are best made against a plan you set in advance, with position sizes you can tolerate, rather than in reaction to a single day’s price move.

Gear that helps on volatile days

Volatile markets reward preparation more than reaction. A few things that can help:

• Ledger Nano X: If you’re among the holders moving coins off exchanges, a hardware wallet keeps your keys offline. Check current price on Amazon
• Trezor Safe 3: An alternative cold wallet for long-term holders who want self-custody without a large setup. Check current price on Amazon
• The Psychology of Money by Morgan Housel: Days like this are mostly a test of behavior, and this book is one of the best on staying rational when markets swing. Check current price on Amazon
• The Bitcoin Standard by Saifedean Ammous: Useful long-term context on why people hold Bitcoin through drawdowns, whether or not you agree with every argument. Check current price on Amazon

This article is for informational purposes only and does not constitute financial advice.