AI Stock Rout and Midterm Aftershocks Send Bitcoin and Crypto Stocks Lower

Cryptocurrencies slid on Thursday as a sharp selloff in artificial intelligence-linked stocks rippled through global markets. Bitcoin dipped below $76,000 following a steep drop in tech shares, while investors assessed how recent U.S. midterm election results might affect demand for AI infrastructure.

Equity markets saw heavy losses: the Nasdaq plunged nearly 6% and a chip-focused index dropped over 10% in early trading. Miners and crypto-related equities were especially hard hit, reflecting growing ties between bitcoin mining and AI data-center opportunities.

Market dynamics and political concerns

The midterms, which gave Democrats control of both chambers of Congress, have raised questions about the pace of data-center construction that supports the AI boom. Some market participants fear greater political opposition could slow projects and reduce demand for the specialized computing capacity many miners are pivoting toward. That uncertainty appears to have been a key driver of the selloff, reversing the brief post-election rally that many attributed to short-covering.

Joshua Lim, global co-head of markets at FalconX, noted fresh selling as investors began pricing in a potentially slower rollout of data centers. Carlos Guzman from GSR added that doubts over returns on massive AI infrastructure investments were already emerging—and the election outcome amplified those concerns. Disappointing earnings from several chipmakers added to the negative sentiment.

Impact on crypto companies and major tokens

Public crypto firms were swept into the decline: Coinbase, Circle and BitGo each fell roughly 10%–15%, while MicroStrategy lost nearly 10% as bitcoin exposure weighed on its shares. Still, the largest tokens held up somewhat better than many AI-linked stocks.

Bitcoin traded roughly 5.5% lower over 24 hours, returning to pre-rally levels. Other large tokens—Ether, Solana, XRP and Hyperliquid—saw slightly larger percentage drops in the 6%–7% range. Despite equity turmoil, major cryptocurrencies showed relatively muted losses compared with several leveraged or specialized AI plays.

Leverage, liquidations and outlook

The price reversal coincided with forced selling in derivatives markets, where bullish leveraged bets were wiped out. More than $1 billion of crypto derivatives positions were liquidated in the prior 24 hours, according to CoinGlass—marking one of the largest such events since late October when bitcoin fell from near $82,000 to $76,000.

Market participants cautioned against reading too much into a single volatile session. Wintermute’s Jasper De Maere warned that a one-day decline doesn’t define the trend, noting that crypto has shown resilience amid AI-sector turmoil. With cross-asset correlations elevated, investors should monitor emerging buying opportunities over time as broader adoption trends continue to support longer-term prospects.