Bitcoin Falls Below $76,000 as Tech Rout Triggers a Liquidation Wave

Bitcoin fell below 76,000 dollars on Thursday, November 5, as a sharp selloff in technology stocks spread into crypto markets. TokenPost put bitcoin at 76,571 dollars at 10:40 a.m. ET, down 3.00 percent in one hour and down 5.02 percent over the previous 24 hours.

Bitcoin Magazine reported a wider slide through the morning, from above 80,800 dollars to near 76,000 dollars, with a low near 76,100 dollars shortly after the US stock market opened, the weakest level since the start of the week, according to Bitcoin Magazine Pro data. TipRanks put bitcoin at 75,000 dollars, down 5 percent and at its lowest level in three months. The trackers publish different snapshots taken at different moments, and the figures in this report are each tracker's own.

The selloff started in stocks

TipRanks reported the Nasdaq Composite down more than 1,000 points, or 4 percent, in early trading, with the Dow Jones Industrial Average also down more than 1,000 points and the S and P 500 down nearly 3 percent. Bitcoin Magazine, citing CNBC, reported the Nasdaq Composite tumbled as much as 3.9 percent on Thursday and slipped into correction territory, trading 10 percent below the record close it set last month.

Liquidations stacked up

As the price broke lower, leveraged bets were closed out in waves. TokenPost reported long liquidations across Binance, Bybit and OKX reached 101 million dollars in the same hour, against 5.26 million dollars in short liquidations. Bitcoin Magazine put liquidations at roughly 370 million dollars in about an hour as bitcoin broke 77,000 dollars and ether fell below 2,300 dollars, most of them long bets. A liquidation is the forced closing of a leveraged position, and a fall this fast closes long positions first.

CryptoPotato, citing CoinGlass data, reported liquidations in the past hour alone totaled over 560 million dollars, with 530 million dollars coming from longs, and that more than 165,000 traders were liquidated within the past day. EthNews, citing CoinGlass, put total liquidations over 24 hours at 1.03 billion dollars, affecting 199,365 traders, with longs at 924.94 million dollars, or 89.4 percent, and shorts at 109.90 million dollars. In the CoinMarketCap snapshot reported by EthNews, bitcoin traded at 75,940.87 dollars after declining 5.58 percent, and ethereum fell 6.23 percent to 2,281.56 dollars.

One inflow held up

The fall came a day after money moved back into bitcoin funds. CoinDesk reported US spot bitcoin ETFs took in 74.6 million dollars on Wednesday, ending a three day outflow streak, according to Farside Investors.

What traders watch next

Bitcoin Magazine reported traders are watching whether bitcoin can hold the 75,000 dollar area, which held as support on election night and several times since August. Friday's October jobs report is the next major test, followed by October CPI on November 10 and the Federal Reserve decision on December 9.