The cryptocurrency market suffered a sharp reversal on November 5, 2026, as Bitcoin fell approximately 6% to $75,700 and leveraged trading liquidations approached $1.1 billion over 24 hours.
The decline erased Bitcoin’s recovery above $80,000 following the November 3 US midterm elections, when Democrats secured control of both chambers of Congress.
Ethereum dropped more than 7% to approximately $2,247, while Solana, XRP and other major cryptocurrencies also recorded substantial losses. The global cryptocurrency market lost approximately 5% of its value, with market capitalization falling toward $2.64 trillion.
The selloff coincided with heavy losses across US equities, particularly technology companies exposed to artificial intelligence infrastructure spending.
Although election-related uncertainty contributed to market volatility, analysts cautioned that the timing did not establish the election outcome as the direct cause of the decline.
Leveraged Long Positions Account for Most Liquidations
Data from CoinGlass showed approximately $1.09 billion in cryptocurrency derivatives positions liquidated during the 24-hour period ending November 5. Long positions accounted for roughly $955.6 million, representing approximately 88% of the total.
Short liquidations contributed another $130.7 million, while nearly 210,000 traders were affected. Bitcoin-related liquidations reached approximately $282.3 million, with Ethereum accounting for another $173.7 million.
The largest reported individual liquidation involved an Ethereum perpetual futures position worth approximately $10.94 million. Liquidations accelerated as prices declined, forcing exchanges to close leveraged positions that no longer satisfied margin requirements.
Such closures can intensify selling pressure when large numbers of traders hold similar positions. The figures represent the notional value of positions forcibly closed, rather than the total amount of investor capital permanently lost. Liquidation totals also vary depending on reporting times and the exchanges included in each data provider’s calculations.
Bitcoin briefly fell below $75,500 on some trading venues, reaching its lowest level since mid-September.
Technology Stock Selloff Adds Pressure to Cryptocurrency Markets
The cryptocurrency decline unfolded alongside a broad retreat in US equities. The Nasdaq Composite fell approximately 5.5%, while the S&P 500 declined 4.3% and the Dow Jones Industrial Average lost 3.4%, according to CoinDesk’s market-close report.
Technology and artificial intelligence-related companies experienced particularly heavy selling amid concerns about infrastructure spending and future investment returns. Cryptocurrency-linked equities also weakened. Shares of Coinbase, Strategy and other digital asset businesses fell sharply, while several Bitcoin mining companies experienced double-digit declines.
The parallel movements highlighted the sensitivity of cryptocurrencies to changes in investor appetite for speculative assets. Bitcoin had recovered above $80,000 on November 4 as investors reassessed the implications of the US midterm elections. However, that recovery proved short-lived as broader financial markets moved lower the following session.
Trading firm Wintermute cautioned against drawing conclusions about cryptocurrency’s longer-term prospects from a single trading day. Analysts at FalconX and GSR also pointed to concerns about slowing artificial intelligence infrastructure investment as contributing to the broader market retreat.
The latest selloff follows several weeks of elevated cryptocurrency volatility, including significant exchange-traded fund withdrawals and security-related uncertainty. For investors, the combination of falling prices and concentrated leveraged positions demonstrates how rapidly market conditions can deteriorate when liquidity weakens.
The immediate outlook remains dependent on broader financial market developments, derivatives positioning and demand for cryptocurrency exposure. While the election-related rebound has been erased, the available data do not establish whether the decline represents a sustained trend or another episode of short-term volatility.
