The cryptocurrency market continued its decline on Friday, November 6, as Bitcoin, Ethereum, and XRP extended losses following a sharp selloff in US technology stocks. The global crypto market capitalization fell approximately 5.4% over 24 hours to $2.54 trillion, according to the supplied market snapshot.
Bitcoin traded around $75,551, down 6.09%, while Ethereum fell 8.32% to $2,221. XRP also came under pressure, declining 8.33% to approximately $1.20.
The latest decline followed the reversal of Bitcoin's post-election rally, renewed withdrawals from US spot crypto exchange-traded funds (ETFs), and more than $1 billion in leveraged liquidations.
For cryptocurrency investors, three developments explain much of the pressure.
1. US Technology Stocks Trigger a Broader Risk-Off Move
The first major reason behind the decline was a sharp selloff across US technology stocks.
Bitcoin had climbed above $80,000 on Wednesday after Democrats secured control of both chambers of Congress in the US midterm elections. However, the rally quickly reversed on Thursday as investors reassessed the potential impact of the election results on technology spending and regulation.
The Nasdaq Composite fell approximately 5.5%, while the S&P 500 declined around 4.3%. Semiconductor companies and major technology stocks faced particularly heavy selling.
Investors are concerned that a Democratic-controlled Congress could increase scrutiny of artificial intelligence infrastructure and slow the expansion of data centers. This uncertainty has affected companies connected to the AI trade, including semiconductor manufacturers and technology infrastructure providers.
Crypto-related stocks also declined. Coinbase and Strategy each lost approximately 10% during Thursday's session.
Bitcoin and other cryptocurrencies increasingly trade alongside risk-sensitive assets during periods of market uncertainty. When investors reduce exposure to technology stocks and other speculative investments, digital assets can experience similar selling pressure.
The political outcome has also raised questions about the future of US crypto legislation. Senator Elizabeth Warren, a longtime critic of the industry, could gain greater influence over the Senate Banking Committee. This has added another layer of uncertainty for investors waiting for progress on digital asset market-structure legislation.
2. Bitcoin and Ethereum ETFs Lose Nearly $530 Million
Institutional investment flows provided another reason for concern.
On November 5, US spot Bitcoin ETFs recorded approximately $430.20 million in net outflows. Fidelity's FBTC led withdrawals with $199.87 million, followed by BlackRock's IBIT with $104.97 million.
Ethereum ETFs also experienced withdrawals, losing approximately $99.9 million during the same session. BlackRock's ETHA accounted for around $75.2 million of the total, while its ETHB fund recorded approximately $22 million in outflows.
Combined, Bitcoin and Ethereum investment products lost roughly $530 million in one trading session.
The withdrawals reversed the previous day's positive flows. On November 4, Bitcoin ETFs attracted approximately $74.6 million, while Ethereum ETFs recorded around $53 million in net inflows.
The November 5 withdrawals also extended a difficult period for institutional demand, with both groups recording net outflows in four of the previous five trading sessions.
Altcoin Buzz previously reported on the $430 million Bitcoin ETF outflows led by Fidelity and BlackRock. Continued withdrawals from major funds could make it harder for Bitcoin to recover if institutional buying remains weak.
However, one day of ETF outflows does not establish a long-term institutional exit. Investors will need to monitor whether the withdrawals continue over subsequent sessions.
3. Crypto Liquidations Exceed $1 Billion
Leveraged trading amplified the market decline.
According to CoinGlass data, approximately $1.08 billion in cryptocurrency positions were liquidated over 24 hours on Thursday. Long positions accounted for around $954 million, meaning traders betting on higher prices suffered most of the losses.
By early Friday, the cumulative liquidation figure had approached $1.25 billion, including approximately $1.11 billion in long positions.
Liquidations occur when traders using borrowed funds no longer have enough collateral to maintain their positions. Exchanges automatically close these positions, creating additional buying or selling activity depending on the direction of the trade.
In this case, falling cryptocurrency prices forced exchanges to close bullish positions. Those forced sales added further downward pressure to Bitcoin, Ethereum, XRP, and other digital assets.
The reversal was particularly sharp because Wednesday's recovery had produced the opposite outcome. Approximately $378 million in short positions were liquidated within one hour as Bitcoin moved above $80,000.
The market therefore experienced forced buying during the rally, followed by substantial forced selling during the correction.
Altcoin Buzz recently covered how Bitcoin's post-election rally was reversed as liquidations exceeded $1 billion.
How Low Could Bitcoin, Ethereum and XRP Go?
The latest decline has placed several important technical levels under pressure.
Bitcoin (BTC): Bitcoin is testing the $75,000 area after falling below its 50-week moving average. A sustained break below $75,000 could expose the next support zone near $73,000. On the upside, recovering $77,000 would be an early sign that buyers are returning, while $80,000 remains an important psychological level.
Ethereum (ETH): Ethereum is approaching support around $2,200. If buyers fail to defend this level, the next area to watch is approximately $2,170. A recovery above $2,300 could help improve short-term momentum.
XRP: XRP has slipped toward $1.20, with the $1.18 area emerging as an immediate level to watch. A sustained breakdown could expose the psychological $1.00 level, although a recovery above $1.25 would provide an early indication of improving buying interest.
These are technical reference levels, not guaranteed price targets. Market conditions and trading volume could change the outlook quickly.
What Should Cryptocurrency Investors Watch Next?
The latest selloff reflects several pressures arriving at the same time: weakness in technology stocks, ETF withdrawals, uncertainty surrounding US crypto regulation, and forced liquidations across derivatives markets.
Friday's US employment report could add another source of volatility by influencing expectations for interest rates and the Federal Reserve's next policy decisions.
For cryptocurrency investors, the next few sessions will be important. Bitcoin's ability to defend the $75,000 area, a recovery in ETF flows, and a reduction in leveraged liquidations could help stabilize sentiment.
However, if technology stocks continue falling and institutional withdrawals persist, Bitcoin, Ethereum, and XRP could face further pressure.
The decline also highlights the risks of treating cryptocurrency investments as independent of broader financial markets. Even projects with strong fundamentals can experience sharp price declines when investors reduce exposure to risk assets.
