U.S. stocks and cryptocurrencies suffered sharp declines as concerns over a potential Democratic sweep of both chambers of Congress fueled fears of tighter regulation across the artificial intelligence industry. The political shift also raised questions about possible investigations into business dealings involving the Trump family, including its cryptocurrency-related ventures, according to Wu Blockchain.
The Nasdaq Composite recorded the steepest decline among major U.S. stock indexes, falling 5.10% in intraday trading. The S&P 500 dropped 3.43%, while the Dow Jones Industrial Average declined 2.41%, reflecting broad selling pressure across the equity market.
Cryptocurrency markets also experienced substantial losses. Bitcoin (BTC) fell 5.97% to $75,695.68, after reaching an intraday low of $75,568, according to market data from Binance. Ethereum (ETH) declined 7.29% to $2,247.74, having touched a low of $2,236.78.
Crypto Liquidations Approach $880 Million in Four Hours
The market downturn triggered widespread liquidations across leveraged cryptocurrency positions. Data from CoinGlass showed that $879.92 million in crypto positions were liquidated over a four-hour period.
Long positions accounted for the overwhelming majority of those forced closures, totaling $818.90 million. Short liquidations reached $61.02 million, indicating that traders betting on higher prices bore most of the losses during the period.
The liquidation figures increased further when measured across a full 24-hour period. Total crypto liquidations reached $1.03 billion, affecting 198,192 traders, according to CoinGlass data.
The largest individual liquidation was recorded on Binance's ETHUSDT trading pair, involving a position worth $10.94 million. The figure highlights the scale of losses concentrated in a single leveraged trade as Ethereum prices moved lower.
Political Uncertainty Adds to Market Concerns
The reported Democratic sweep of both chambers of Congress added a political dimension to the market sell-off. Concerns centered on the possibility that lawmakers could pursue tighter oversight of the artificial intelligence sector, a development that weighed on sentiment toward U.S. stocks and digital assets.
Democrats are also planning investigations into business dealings involving the Trump family, including ventures connected to the cryptocurrency industry. Those potential inquiries represent another source of political uncertainty cited in the market report.
Wu Blockchain linked the declines in stocks and cryptocurrencies to these concerns, while the market figures show the extent of the immediate reaction across equities, Bitcoin, Ethereum and leveraged crypto positions.
According to CoinGlass, the 24-hour liquidation total reached $1.03 billion across 198,192 traders, with Binance's ETHUSDT pair recording the largest single liquidation at $10.94 million.
Writer: Victoria Hale Technology & Blockchain Writer
Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.
She prioritises clarity and accuracy when explaining technical developments to a general audience.
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The articles on Hokanews are here to keep you updated on the latest buzz in crypto, tech, and beyond—but they’re not financial advice. We’re sharing info, trends, and insights, not telling you to buy, sell, or invest. Always do your own homework before making any money moves.
Hokanews isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.
