• Crypto followed a broad selloff in tech stocks after Democrats won control of both chambers of Congress.
  • Leveraged bets on rising prices took most of the liquidation losses.
  • Contracts on chip stocks traded on crypto exchanges were liquidated in bigger amounts than most altcoins.
  • Planned probes into Trump family crypto ventures make the CLARITY Act’s path harder.

The crypto market fell sharply on Thursday, November 5, as traders started pricing in what a Democratic-controlled Congress could mean for the industry and for the crypto businesses tied to President Donald Trump’s family. Bitcoin dropped 5.4% to about $76,000 and Ethereum lost more than 7%. CoinGlass data shows that leveraged positions worth $1.06 billion were forcibly closed over 24 hours, and close to nine in ten of them were bets on rising prices. The selloff also tracked a fall of more than 5% in the Nasdaq Composite as investors sold AI-linked stocks.

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Chip Stocks Dragged Crypto Down With Them

About $1.3 trillion in technology market value disappeared within 30 minutes of the opening bell. SanDisk fell more than 20%, AMD fell about 16% and Nvidia fell more than 8%, as traders bet that Democrats would put more pressure on AI>Santiment’s social data shows the election had little to do with that drop. Binance signed its letter of intent to buy FTX on polling day, Bitcoin fell from $20,603 to $15,881 in two days, and in the bankruptcy week FTX was mentioned about 50 times more often than the midterms. This year, Bitcoin closed results day at $80,417 and then gave back the gain as the selloff in tech stocks spread.

Trump Media & Technology Group moved about $343 million in Bitcoin to Crypto.com this week, according to on-chain tracking. That transfer has raised questions about whether the company is preparing to sell part of its holdings. Trump Media may have to repay as much as $1 billion in debt later this month, so a sale would add supply from a company linked to the president just as Congress prepares to investigate his family’s crypto income.