Crypto Majors Drop 5% as AI Equities Crash and Longs Lose $1.1B

Digital asset markets erased post-election gains following a sharp downturn in U.S. technology stocks, leading to more than $1.1 billion in crypto long liquidations over 24 hours ¹. $BTC fell 5.4% to $75,871, tumbling below its pre-election valuation, while $ETH sank 7.6% to $2,239 ¹. At the time of writing, Bitcoin stood at $75,586 as digital asset market capitalization slipped to $2.56 trillion.

The decline followed a broader tech rout on Thursday, during which the S&P 500 fell 4.36% and the Nasdaq dropped 5.52% ¹. Market losses concentrated in the semiconductor space, where the iShares Semiconductor ETF posted a single-session plunge exceeding 12% ¹. Investors re-evaluated the outcome of the U.S. congressional elections after state-level victories by Democrats signaled rising local pushback against data center construction, raising expectations of slower permitting and tighter oversight for the artificial intelligence buildout ¹.

Altcoins also experienced broad losses, with $XRP falling 9.8%, $SOL retreating 7% to $90.1, and Hyperliquid's $HYPE dropping 4.9% ¹. Conversely, privacy-focused tokens proved resilient: $ZEC fell 0.8% to trade near $1,310, while Monero dropped 2.2% ¹. The divergence reflects historical performance trends; over the past year, ZEC has gained 146% while Bitcoin declined 26% ¹. Markets are closely tracking tech volatility, recalling past periods when Bitcoin slides toward $76,000 as tech slumps.

Oversight and Macro Headwinds

Regulatory scrutiny is also re-emerging on Capitol Hill. Representative Robert Garcia, expected to lead the House Oversight Committee under the Democratic majority, stated that the panel intends to investigate the business ventures of Donald Trump's family ¹. Inquiries may begin in February, with the decentralized finance project World Liberty Financial expected to be among the initial subjects ¹. Market participants now await the release of the October U.S. jobs report, which will shape interest rate expectations ahead of the Federal Reserve's December meeting ¹.