The sharp drop in US tech stocks triggered a chain reaction, and BTC fell below the $75,000 support level

According to Woofun AI, the sharp decline in the technology sector of the US New York stock market quickly spread to the digital asset sector, causing the Bitcoin price to fall back to near the $75,000 mark under pressure. The core driving force behind this market turmoil was not simply technical adjustments, but stemmed from deep uncertainty caused by changes in the US political landscape after the midterm elections. With the Democratic Party's victory in the midterm elections, market concerns that the AI industry may face stricter regulation have heated up dramatically. This macro-level risk appetite contraction directly affected technology stocks represented by semiconductors and data center construction, which in turn triggered simultaneous sell-offs in the digital asset market.

In this context, a large number of leveraged long positions have been forced to close, further amplifying the downward pressure on the market and making the entire crypto market show obvious safe-haven characteristics. It is worth noting that although prices have generally declined, market trading volume has bucked the trend, indicating that capital is being drastically changed and the selling momentum is strong.

This cross-asset class linkage effect shows that the correlation between the current digital asset market and traditional risk assets is deepening, and macroeconomic policy expectations have become a key variable affecting currency price trends.

Judging from specific market data, the total global digital asset market value recorded 2.55 trillion US dollars on the 5th (local time), a decrease of 4.92% from the previous day. Meanwhile, trading volume within 24 hours was approximately $101.58 billion, up 7.35% from month to month.

This phenomenon of volume increase and price decline usually means that the selling pressure is huge, and investors are in a hurry to leave the market. According to data compiled by Woofun AI, the price of major tokens fell across the board. Among them, the price of Bitcoin fell 5.23% to $75945.89; Ethereum fell even more significantly, falling 7.22% to $2244.67; and the price of Solana fell 5.35% to $89.89, officially falling below the $90 psychological barrier.

Other mainstream assets were not spared, with Binance Coin falling 3.45% to $691.30, Ripple down 5.03% to $1.23, Dogecoin down 5.65% to $0.07256, and HYPE plummeting 6.96% to $78.03. In contrast, the wave performance was relatively resistant to decline, falling only 0.64%, and the price was $0.3176. Currently, Bitcoin accounts for 59.8% of the total market value of digital assets, reflecting a trend where capital is concentrated in leading assets, while the overall trend of other altcoins is weak. The 'Greed and Fear Index', which reflects market sentiment, fell to 32 and was in the 'fear' range, indicating a serious lack of investor confidence.

Additionally, digital asset analyst Ted Pillows pointed out on the X platform that the digital asset market has evaporated $140 billion in value in the last 5 hours, and quoted US Representative Yasamin Ansari's views on suspending artificial intelligence development and strengthening regulation, as one of the important macroeconomic factors leading to the market crash.

Leveraged liquidation data revealed the microscopic mechanism of this decline. Approximately $8385.4 million of positions were forcibly closed within 24 hours, of which long positions accounted for 88.4%, or about $7410.4 million.

This means that the vast majority of bullish investors were forced to stop losses in the process of falling prices, forming a vicious cycle of 'decline - liquidation - further decline'. Bitcoin had rebounded to $8,105 on the previous day, but on the 5th, its trading price on the Bitstamp platform dropped to 75,468 dollars, which was a huge one-day amplification.

This sharp price fluctuation not only tests investors' position holding mentality, but also reveals the fragility of the market in a highly leveraged environment. As a large number of long positions are cleaned up, the short-term selling pressure on the market may ease, but it also means that upward momentum has been seriously weakened. Currently, the market is at a critical point in a long and short game, and any new macro news or large capital flows may trigger further price fluctuations. Investors need to pay close attention to subsequent capital flows and changes in market sentiment to determine whether the market has bottomed out.

Looking ahead, Bitcoin's ability to hold the $75,000 support level will be the key to determining the short-term trend. Ted Pillows analysis suggests that there is an additional liquidity area below $75,000, so Bitcoin's potential downside target could be $74846.

This view was shared by some market participants, who believe that if the price fails to rebound effectively, it may fall further. However, there are also optimistic voices. For example, Killa believes that despite high market volatility and poor investor sentiment in the short term, Bitcoin is still likely to reach the $126,000 level in the long run.

This divergence reflects the market's uncertainty about future trends. CryptoReview notes that in the $73,000 to $78,000 range, there is about twice the liquidity to close positions in the upper region, which means that if the price falls below this range, it may trigger a larger wave of liquidations, thereby increasing downward pressure. Therefore, the market generally believes that whether the support level of $75,600 to $76,000 can be stabilized again will be a key factor in determining the short-term trend.

If Bitcoin can maintain this range and gradually rise back to the level of $80,000 to $81105, then the price is expected to rise again; conversely, if it fails to hold, further pressure to close positions may increase, causing the price to continue to decline. Investors should be cautious, pay close attention to market trends, and manage risk well.