Could the largest cryptocurrency stay immune while the entire tech market is convulsed by a selling panic? The short answer is no.
Nasdaq Composite capitalisation losses
The Nasdaq Composite recorded the biggest market?cap loss in its history, led by chipmakers after disappointing profit outlooks and worries that Democratic control of Congress will bring tougher regulation of the AI industry. The sell?off spilled into risky assets as if someone pulled the support out from under the whole tech sector. Bitcoin fell into the $76,000 area — a September low — posting its steepest one?day drop in five months. Ether plunged alongside it.
A lingering negative for Bitcoin is that the market has yet to recover from the record $6.3 billion Binance hack and fading retail enthusiasm. Volatility in tech stocks added pressure, although a decline in Treasury yields would normally support speculative assets in a different scenario, so that factor's net effect is ambiguous.
Stock?market volatility dynamics
Investor anxiety that Democratic control of Congress will choke off industry?friendly legislation and impose tougher oversight on digital?asset firms also weighs on BTC/USD. Broader macro effects are unclear. Political gridlock could limit fiscal stimulus and depress speculative assets, while falling Treasury yields might eventually ease financial conditions in their favour.
In the days after the Binance hack, investors pulled $1 billion from spot Bitcoin ETFs, Bloomberg data show, with capital leaking from funds like water through a crack in a dam. BlackRock's IBIT was hit hardest, losing about $900 million.
The on?chain picture has changed, too. A month ago, almost all coins held by short?term holders (bought in the past 155 days) were in profit, like a bountiful harvest. That share has collapsed. Glassnode notes that most holders of those coins are now underwater.
One support factor for Bitcoin remains its integration into the traditional financial system. Glassnode argues that Democrats taking Congress is unlikely to dramatically shake market sentiment because Bitcoin is much more embedded in the broader financial system than in previous cycles — with banks, asset managers and ETFs on board.
Bitcoin long promised to remain detached from legacy markets — this time it could not hide.
Technically, the BTC/USD daily chart shows a long?bodied bar and a rejection at the moving averages. These are bearish signals that support maintaining short positions. Targets lie at $71,600 and $69,400.
