Bitcoin crashes to 7-week low as stocks reverse gains — SkimNews
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- Bitcoin fell 6% to $75,463, its lowest level since September 16, breaching key technical support near the 50-week simple moving average at $75,733.
- U.S. stock markets erased midterm election gains, with the Nasdaq Composite dropping 4.2% and the S&P 500 falling 2.7% as investors rotated out of tech stocks.
- Crypto liquidations totaled nearly $500 million in the first hour of U.S. trading, with 24-hour liquidations approaching $850 million amid the sharp price drop.
- Oil prices rebounded as WTI crude rose above $90 per barrel and Brent gained 2.5%, driven by reports of fresh strikes on tankers in the Middle East.
- Portfolio manager Jordan Watson warned of ongoing volatility, stating post-election equity gains should not be seen as an 'all-clear signal' for investors.
- Economist Mohamed El-Erian questioned whether the congressional shift would meaningfully slow the tech sector, calling the day’s tech weakness 'not surprising.'
Why it matters: Bitcoin’s drop below $76,000 and the Nasdaq’s 4.2% fall signal a sudden risk-off shift, undermining the post-election rally. With nearly $850 million in crypto positions liquidated, leveraged traders face immediate losses while broader market confidence hinges on tech sector resilience.
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