Bitcoin and Solana erased their gains from Wednesday's surprise rally on Thursday as a sharp selloff across U.S. technology and artificial intelligence stocks spilled into cryptocurrency markets.
Bitcoin fell approximately 6% to $75,200, dropping below $76,000, while Solana declined more than 6% to $88.50, slipping below $89. Both assets reversed Wednesday's recovery, when Bitcoin climbed above $80,000 following the U.S. midterm elections and confidence that the aftermath of the $6.3 billion Binance hack had not significantly disrupted the market.
The reversal suggests that election-related optimism and relief surrounding the Binance incident provided only temporary support, while broader macroeconomic uncertainties continued to weigh on investor sentiment.
The Official Trump ($TRUMP) memecoin also fell sharply, hitting an all-time low of $1.12 after the midterms. The token has declined more than 20% over the past week, according to CoinGecko data.
$1.27B in Crypto Liquidations Hit Traders
The sharp market decline triggered widespread liquidations across leveraged cryptocurrency positions. According to CoinGlass, 241,244 traders were liquidated over the past 24 hours, with total losses reaching $1.27 billion. The largest single liquidation occurred on Binance's ETHUSDT market, involving a $10.94 million position.
Wall Street's AI Selloff Spills Into Crypto
The cryptocurrency downturn coincided with a significant selloff across U.S. equities as investors reassessed the sustainability of the artificial intelligence investment boom. The Nasdaq 100 plunged 6.3%, wiping out approximately $2.3 trillion in market value, while the S&P 500 fell 4.4%, losing another $2.8 trillion.
Both the Nasdaq 100 and S&P 500 recorded their worst daily performances since April 2025, when President Donald Trump's global tariff announcements rattled financial markets. The selloff gained momentum following Democratic victories by candidates critical of AI expansion, adding to concerns about the future of technology sector investments.
Trump blamed the election results for Thursday's stock market decline in a Truth Social post, describing it as one of the worst days in market history but maintaining that markets would eventually recover.
Election Results Complicate Crypto Regulation Outlook
Beyond the immediate market reaction, the midterm election results could complicate the outlook for cryptocurrency regulation in the United States. Democrats strengthened their position in Congress, making bipartisan cooperation absolutely necessary for meaningful progress on crypto legislation over the next 2 years.
While the CLARITY Act's prospects remain uncertain, analysts expect the existing regulatory framework to remain largely intact until the next election cycle. Although the election results could delay legislative progress, it does not necessarily undermine longer-term institutional demand for digital assets.
U.S Spot ETFs Record $535M in Outflows
Institutional investment products also reflected the market's deteriorating sentiment. U.S. spot ETFs recorded approximately $535 million net outflows on Thursday. Bitcoin ETFs accounted for roughly $430 million, while Solana ETFs lost approximately $1.18 million.
The withdrawals reversed part of Wednesday's positive momentum, when Bitcoin ETFs attracted $74.5 million in net inflows as Bitcoin briefly reclaimed $80,000.
Meanwhile, Solana ETFs continue to face persistent outflows. Since October 1, they have recorded positive net inflows in only 2 of 26 trading sessions. They also recorded $143.7 million in net outflows throughout October, their worst monthly performance on record.
Meanwhile, CoinMarketCap's Fear & Greed Index stands at 32, unchanged from yesterday and indicating continued fear among market participants.
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