Bitcoin has dropped back to the $75,000 range within a day. The cryptocurrency market was hit hard as a sell-off in U.S. stocks, particularly in AI and semiconductor sectors, intensified. Concerns over increased regulation following the U.S. midterm elections and large-scale forced liquidations have contributed to the downward trend.
As of 8 a.m. on November 6, according to global cryptocurrency tracking site CoinMarketCap, Bitcoin was trading at $75,662, down 6.18% from the previous day. After the political uncertainty eased following the midterm elections and the possibility of war negotiations between the U.S. and Iran increased, Bitcoin had briefly recovered to the $80,000 mark, but it relinquished most of those gains within a day.
Major altcoins also experienced significant declines. Ethereum, the second-largest cryptocurrency by market capitalization, fell 8.46% to $2,221.73. During the same period, Ripple (XRP) dropped 7.22% to $1.21, and Solana fell 6.62% to $89.52. Binance Coin (BNB) decreased by 4.78% to $686.88.
The recent plunge is largely attributed to the sell-off in technology stocks on the U.S. stock market.
On November 5, the Nasdaq index, heavily weighted with tech stocks, plummeted by 5.5%. The S&P 500 and Dow Jones Industrial Average also fell by 4.4% and 3.4%, respectively, erasing gains from the previous day.
Particularly, shaken investor expectations regarding the AI industry have sent shockwaves through the market. With the Democratic Party gaining control of both the House and Senate in the midterm elections, concerns have grown over potential regulatory tightening on AI data center construction.
In the cryptocurrency market, large-scale forced liquidations have exacerbated the decline. According to cryptocurrency news outlet CoinClass, over $1 billion in positions were forcibly liquidated in the derivatives market within the last 24 hours, most of which were bets on future price increases. The drop in Bitcoin prices has created a vicious cycle of further selling.
The uncertainty surrounding cryptocurrency regulation legislation following the midterm elections is also heightening market apprehension. With the Democratic Party controlling Congress, the legislative outlook for cryptocurrency market structure bills has become unclear, and there are expectations of increased oversight and regulation of the industry, dampening investor sentiment.
Market analysts believe that for the time being, the direction of Bitcoin prices will be determined by movements in the U.S. stock market and the recovery of investor sentiment. In particular, the upcoming release of U.S. employment data for October and changes in expectations regarding the Federal Reserve's future interest rate policies are key variables. If risk-averse sentiment persists, increased volatility in the cryptocurrency market is anticipated.
Meanwhile, at the same time, Bitcoin was trading at 10,292,000 won (approximately $75,843) on the domestic cryptocurrency exchange Bithumb, down 2.58% from the previous day. The Kimchi premium, which indicates the price difference between domestic and overseas exchanges, was recorded at 0.34%.
* This article has been translated by AI.
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