Bitcoin hits 7-week low as US chip stocks sell off after midterms
Bitcoin fell about 6% and ETH more than 7% as Nasdaq and chip stocks dropped; outlets linked the move to Democratic wins and AI regulation worries.
Bitcoin dropped to a seven-week low on Thursday as US stocks sold off at the opening bell, according to Cointelegraph. Decrypt said the move erased a Wednesday rally that had been helped in part by short covering. Wu Blockchain, citing Binance data, put BTC down 5.97% at $75,695.68, with a session low of $75,568.
Decrypt described the fall as nearly 5%, while Cointelegraph said about 6%. The outlets appear to have measured at different moments.
Stocks lead the drop
BeInCrypto reported that US equities lost roughly $2 trillion in market value within an hour of the open. It said the S&P 500 first fell 1.8%, then more than 3%, its worst intraday drop since April 2025. The Nasdaq entered correction territory, meaning it was at least 10% below its recent peak, and the Dow lost 1,000 points. Wu Blockchain's intraday figures were Nasdaq down 5.10%, S&P 500 down 3.43% and Dow down 2.41%. A post quoted by BeInCrypto showed a chip index down 11.2%, the steepest fall since March 2020.
Both Wu Blockchain and BeInCrypto tied the sell-off to AI regulation fears after Democrats won both chambers of Congress on Tuesday. BeInCrypto said Democrats also flipped governor's races in Texas, Georgia and Ohio, and that all three winners ran against rapid data center growth. Their proposals include a construction moratorium in Texas, a temporary pause in Georgia and a requirement in Ohio that developers cover their own utility costs.
BeInCrypto added a second factor. Qualcomm reported handset chip revenue down 26% to $5.14 billion, below analyst estimates, and its shares fell almost 12%, pulling other chipmakers lower.
Crypto liquidations and open questions
Wu Blockchain said ETH fell 7.29% to $2,247.74. CoinGlass data it cited showed $879.92 million in positions liquidated over four hours, of which $818.90 million were longs. Over 24 hours, liquidations reached $1.03 billion across 198,192 traders, with the largest single order a $10.94 million ETHUSDT position on Binance. Decrypt, using a different measure, put wiped-out longs at $428 million.
Wu Blockchain also reported that Democrats plan to investigate Trump family business dealings, including crypto-related ventures. No other source here confirmed that, and no timetable was given.
Separate case: cryptojacking extradition
Decrypt and Cryptopolitan also reported that Canadian Ryan James Roach, 35, was extradited to the US on October 28. He faces charges over a scheme that allegedly hijacked university supercomputers to mine crypto between June 2016 and December 2019. Prosecutors named victims in New York, Tennessee, North Carolina and Massachusetts, and the Justice Department did not say which coin was mined. The charges carry up to 10 years in prison and a $250,000 fine.
Cryptopolitan said Roach appeared in federal court in Rochester on November 3 and pleaded not guilty. It said his detention hearing did not go ahead after he asked for more time, and no new date has been set. Extradition proceedings against co-defendant Mathiew James Stubbings, 41, are continuing in Canada.
Sources
- Canadian Man Extradited to US Over Plot to Hijack University Supercomputers for Crypto Decrypt
- US Stocks and Crypto Plunge as Democratic Sweep Fuels AI Regulation Fears Wu Blockchain
- Why Is the US Stock Market Crashing? 3 Reasons Behind the $2 Trillion Wipeout BeInCrypto
- Bitcoin Erases Election Rally as AI Stocks Plunge, $428 Million in Crypto Longs Get Wiped Out Decrypt
- Bitcoin crashes 6% to 7-week low as US stocks erase election gains Cointelegraph
- Canadian extradited to US seven years after university supercomputer cryptojacking Cryptopolitan
Written with AI assistance from the sources above and checked against them. Not investment advice.