Crypto Markets Plunge as Nasdaq Tech Sell-off Triggers Liquidations

Cryptocurrency markets experienced steep losses on November 5 and 6, 2026, erasing gains made following the U.S. midterm elections. Bitcoin briefly rose above $81,000 before falling toward $76,000, while Ethereum dropped 7.80% to $2,233.79 and Solana declined 6.22% to $89.55.

The downturn followed a 5.5% plunge in the Nasdaq, driven by investor concerns over artificial intelligence infrastructure investments and elevated valuations. This shift in sentiment prompted investors to reduce risk exposure, resulting in more than $1 billion in liquidated leveraged crypto positions and a nearly 2% decrease in stablecoin supply over one week.

Institutional pressure intensified as spot Bitcoin and Ethereum ETFs returned to negative territory after a single day of inflows. Prior to a modest Wednesday increase, spot Bitcoin ETFs saw more than $1.1 billion in net outflows over three sessions. In contrast to the crypto slump, gold prices rose nearly 5% over two days and demand for U.S. Treasuries increased.

Market support currently relies on lower oil prices and diminished expectations for a Federal Reserve interest rate hike in December. Analysts indicate that Bitcoin's ability to maintain the $75,000 to $76,000 support region is critical to avoiding a deeper correction.