US stocks plummeted 5.52%: Bitcoin fell below 75,000 or hit bottom

According to Woofun AI, as the Democratic Party took control of the US Congress, market considerations about potential risks in the artificial intelligence industry heated up sharply, causing mainstream cryptocurrencies and traditional stock markets to experience a sharp sell-off simultaneously on Thursday. The price of Bitcoin fell sharply to around $75,200, the lowest since mid-September; Ethereum once dropped to $2,206, a daily decline of more than 7%.

This systemic decline not only hit crypto native assets hard, but also affected the stock prices of related listed companies, Strategy Inc. (MSTR.US) and Bitmine Immersion Technologies Inc. (BMNR.US), which fell sharply by 9.29% and 12.56%, respectively, indicating the spread of risk aversion in traditional capital to the crypto sector.

According to data compiled by Woofun AI, the deleveraging process in the leveraged market is accelerating. According to CoinGlass statistics, a total of about 1.2 billion US dollars of funds in the cryptocurrency derivatives market have been forcibly liquidated in the past 24 hours. Of this, up to 1.1 billion US dollars came from the liquidation of long positions, reflecting the vulnerability of previous bullish bets.

Meanwhile, the number of open Bitcoin contracts dropped by 1.78% in 24 hours, indicating that some traders are actively reducing their risk exposure. However, market sentiment showed a marked divergence: although the Crypto Fear & Greed Index has once again fallen into a state of “fear,” the sentiment of retail investors and giant whale investors who trade derivatives on the Binance platform unexpectedly turned “extremely bullish.”

This extreme emotional polarization suggests that there are huge differences in perception within the market, and it also lays the groundwork for subsequent price fluctuations. On the traditional stock market side, the gains accumulated after the midterm elections were all erased. The Dow Jones Industrial Average plummeted 1,833.06 points, or 3.44%, to close at 51,523.06 points; the S&P 500 index fell 4.36% to close at 7,353.73 points; and the Nasdaq Composite Index, which is dominated by technology stocks, fell the deepest, reaching 5.52% to close at 24,315.00 points. All three indices recorded their worst single-day performance since April 2025. The core driver of the decline is investors' concerns about the slowdown in data center construction, particularly in the Texas region where plans to deploy next-generation artificial intelligence processing facilities. This concern directly impacted the valuation logic of technology growth stocks.

Notably, macroeconomic data did not deteriorate at the same time. In the last week of October, the number of initial jobless claims in the US fell by 5,000 from the previous value of 194,000 to 189,000, which is lower than market expectations. This indicates that the labor market is still resilient. The current sell-off is more due to repricing of specific industry prospects rather than the collapse of macroeconomic fundamentals.

Well-known cryptocurrency analyst and trader Michael van der Poppe pointed out that Bitcoin's performance in this adjustment was relatively steady, and its decline was only comparable to the decline in the early days of the global pandemic outbreak in March 2020. He predicts that Bitcoin's bottom will occur on Friday and will most likely be established after falling below the $75,000 mark. He stressed that tomorrow will be a critical day. NASDAQ has just experienced one of the worst trading days in a long time, and although Bitcoin's trend is under pressure, it was only in March 2020 that the market was worse. He expects NASDAQ to bottom out tomorrow, and Bitcoin may also bottom out after falling below $75,000. Currently, the market is extremely volatile, and investors need to be wary of severe shocks in the short term.

On-chain analysis agency Santiment further pointed out that the trend of Bitcoin after the midterm elections was the exact opposite of what the market generally expected. At first, bullish social media comments increased sharply as market sentiment eased, but then prices fell sharply on Thursday, sparking a large number of bearish discussions. Santiment added that retail traders tend to follow the trend when the market rebounds and sell in a panic when prices fall. Because of this, extreme sentiment can be a valuable reverse signal. The current situation is more conducive to waiting for the market to rebound rather than continuing to hunt down falling assets. In the two days since the Democratic Party took control of the US Congress, cryptocurrency trends were contrary to general market expectations. The easing of emotions brought about by the election prompted a large number of bullish statements, which surprised many traders, but the subsequent price drop quickly reversed this optimistic expectation.

This “punitive” market reaction shows that the impact of macropolitical events on crypto assets is not linear, but is amplified through emotional leverage. Investors need to be more careful in interpreting market signals to avoid reverse operations when sentiment becomes extreme.