Key takeaways

  • Bitcoin's recovery weakens amid renewed stock market selling
  • S&P 500 drops 1.7% as technology shares tumble
  • Bitcoin ETF inflows return despite fragile market sentiment

Bitcoin is facing renewed pressure after its post-election rebound above $80,000, as a sharp selloff in US stocks threatens to undermine the cryptocurrency's recovery.

The S&P 500 dropped approximately 1.7% during Thursday morning trading on November 5, while the Nasdaq Composite plunged 3.1%. Bitcoin had recently traded below $77,000 before recovering above $80,000 on Wednesday, although a fresh breakdown below that level on Thursday remains unconfirmed.

S&P 500 Slides as AI Stock Selloff Intensifies

The S&P 500's decline followed Wednesday's 1.6% advance, which came after Democrats secured control of Congress in the US midterm elections.

According to Reuters, semiconductor and AI infrastructure companies faced renewed selling pressure as investors reassessed the outlook for data center construction and technology spending.

Qualcomm dropped more than 10% after disappointing smartphone-related earnings, while Nvidia and other major technology companies also weakened.

The broader Nasdaq correction has intensified concerns that expensive AI investments could face financing difficulties and construction delays.

Those concerns have also affected Bitcoin mining companies expanding into artificial intelligence infrastructure.

The renewed weakness matters for Bitcoin because cryptocurrency markets often experience selling pressure during periods when investors reduce exposure to speculative assets.

However, simultaneous declines do not establish that stock-market selling directly caused Bitcoin's latest fluctuations.

Bitcoin ETF Inflows Return, but BlackRock Keeps Selling

Institutional demand presents a more complicated picture.

According to Farside Investors, US spot Bitcoin ETFs attracted $74.6 million in net inflows on November 4, reversing three consecutive sessions of withdrawals.

The improvement followed $398.6 million in outflows on November 2 and another $115.6 million on November 3.

However, fund-level activity remained divided. Fidelity's FBTC attracted $236.7 million, while BlackRock's IBIT lost $201.2 million.

That divergence suggests the recent ETF selling pressure has not disappeared entirely.

The latest inflows also followed an earlier $643 million ETF withdrawal, which highlighted how quickly institutional demand can deteriorate during market stress.

Bitcoin Price Outlook: Can BTC Defend $75,000?

Bitcoin's immediate technical outlook depends on whether buyers can stabilize the market after its failed attempt to sustain a recovery above $80,000.

The $78,000 region remains an important near-term reference, while $76,000–$77,000 represents an area tested during the recent selloff.

If selling pressure intensifies, $75,000 becomes the next major psychological support, followed by approximately $73,188, the 200-day moving average identified in Reuters' November 4 technical analysis.

Conversely, a recovery above $80,000 would bring $81,319 into focus, followed by resistance near $82,000.

A sustained breakout could eventually revive the $85,000 recovery scenario.

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Ethan Mercer

Ethan Mercer is a financial journalist covering crypto, stocks, and the global economy. He studied Economics and Finance and later moved into market reporting, with a particular interest in Bitcoin, equities, monetary policy, and investor sentiment. His work focuses on explaining daily market moves and the broader trends behind them.

https://coinpaper.com/38389/bitcoin-falls-toward-77-k-as-s-and-p-500-slides-1-7-erasing-election-rally