Bitcoin Falls 6% to 7-Week Low as US Stocks Reverse Election Gains

Bitcoin dropped more than 6% to $75,463 on Bitstamp, its lowest level since Sept. 16, as the crypto market reacted to a sharp sell-off in US stocks. TradingView data showed BTC/USD falling below $76,000 at the Wall Street open, reversing the gains recorded after the US midterm elections.

The broader risk-off move followed a rotation out of technology stocks following the reported Democratic sweep of the House and Senate. The Nasdaq Composite Index fell 4.2% to its lowest level since July 29, while the S&P 500 declined 2.7%. Bitcoin also traded briefly below its 50-week simple moving average of $75,733, putting a closely watched support level under pressure.

Market volatility increased as oil prices rebounded amid reports of fresh strikes on tankers in the Middle East and uncertainty over the Democratic administration’s approach to the US-Iran war. WTI crude rose above $90 per barrel, while Brent gained 2.5% to approach $97. Jordan Watson, a portfolio manager at Tandem Investment Advisors, said investors may face continued volatility while assessing the election results and their policy implications, cautioning that the stock rally should not be viewed as an “all-clear signal.”

Economist Mohamed El-Erian said the tech-stock weakness was “not surprising” and questioned whether a shift in Congress could slow technology spending. The sell-off extended beyond Bitcoin, with Solana down 6.84%, XRP down 8.58%, Hyperliquid down 7.97% and BNB down 3.45%. Crypto markets liquidated nearly $500 million in leveraged positions during the first hour of trading.