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Bitcoin tumbled more than 4% on Thursday, falling below $77,000 as a sharp selloff in technology stocks spread across risk assets and triggered hundreds of millions of dollars in leveraged crypto liquidations.
The largest crypto asset by market cap traded near $76,400 at press time. Ethereum fell more than 6% to around $2,270, Solana declined 5% to $90, and XRP dropped 4% to $1.25. The total crypto market capitalization declined 4.6% to approximately $2.57 trillion, according to CoinMarketcap data.
The downturn triggered more than $574 million in crypto liquidations within an hour, including over $540 million in long positions. Total liquidations surpassed $835 million over the previous 24 hours, according to CoinGlass data.
The selloff coincided with sharp declines across US equities, with the S&P 500 falling more than 2.3% and the Nasdaq Composite losing approximately 3.5% during Thursday’s session.
Semiconductor and memory stocks suffered some of the steepest losses. Nvidia declined 6.5%, Micron fell more than 12%, SanDisk plunged over 17%, and AMD dropped more than 13%.
Broadcom shed nearly 7%, while Intel lost another 7% following last week’s disappointing earnings guidance. Tesla dropped nearly 10%, and SpaceX declined around 8%.
Crypto related stocks followed the broader downturn. Strategy, the largest publicly traded corporate Bitcoin holder, fell more than 11%, while Coinbase declined approximately 10%. Circle lost over 12%, and Robinhood dropped around 12%.
Bitcoin mining companies with exposure to AI infrastructure suffered even steeper losses. Cipher Digital plunged nearly 19%, IREN fell 18%, TeraWulf declined almost 17%, and CleanSpark lost more than 16%.
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MARA Holdings and Riot Platforms also dropped around 14%, while Hut 8 fell nearly 11%, extending the downturn across companies that have increasingly positioned their power infrastructure for AI data center development.
The declines followed Tuesday’s midterm elections, which handed Democrats control of both chambers of Congress and raised concerns about tighter oversight of AI infrastructure development.
According to Reuters, investors are increasingly concerned that potential restrictions on data center construction could slow the industry’s expansion, particularly in states where opposition to large facilities has been growing.
UBS analysts estimated that approximately 30% of expected US data center capacity additions in 2028 could be at risk from potential construction pauses.
The political uncertainty has added pressure to an already weakening AI trade as investors question whether the enormous capital spending required for new infrastructure will generate sufficient returns.
Higher borrowing costs have also weighed on companies financing large data center projects, while disappointing semiconductor earnings have added to the selling pressure.
Qualcomm fell around 9% after its smartphone chip sales outlook disappointed Wall Street, adding to broader weakness across the semiconductor sector.
The decline reversed part of Wednesday’s equity rally, when major US indexes advanced following the Democratic election victory, even as AI infrastructure suppliers came under pressure.
Elsewhere, gold gained approximately 1% to trade near $4,100, while silver remained relatively flat around $52. Oil rebounded nearly 3% to trade above $90 after falling sharply in the previous session amid reports of possible progress toward peace with Iran.
