Why is Bitcoin price crashing today? BTC USD falls toward $76,000 amid stock market sell-off and $370 million in crypto liquidations

Bitcoin crash today: A brief BTC USD rally had lifted the price back above $80,000 but the cryptocurrency struggled to hold those gains after Wall Street opened to heavy selling on Thursday.

Within hours, Bitcoin price had fallen to $76,000 level and was trading close to $75,000. Also hundreds of millions of dollars in leveraged crypto positions were wiped out.

The crypto price reversal came after Bitcoin had climbed to about $80,500 overnight. The latest decline has brought the $75,000 price level back into focus, particularly after BTC USD touched around $75,600 earlier in the week.

BTC USD Price Today: Why Is Bitcoin Falling - AI and Tech Stocks Face Pressure

Bitcoin's decline coincided with a sharp fall in technology stocks. The Nasdaq Composite dropped 3.9%, S&P 500 fell around 2%. Nvidia and Broadcom each lost about 5%, and Tesla shares declined roughly 9%.

The selling followed concerns that Democratic victories in the US midterm elections could lead to restrictions on data center construction. Investors are watching whether tighter rules could delay AI infrastructure projects and affect demand for chips and related equipment.

Those concerns matter to the crypto industry as well. Some Bitcoin miners have expanded into AI data center businesses and sold Bitcoin holdings to help pay for those projects, as per a Bitcoin Magazine report. This has made parts of the mining sector more exposed to changes in technology investment.

Bitcoin Liquidations Reach $370 Million as Long Traders Lose Positions

The speed of Bitcoin's decline also caught leveraged traders off guard. Around $370 million in crypto positions were liquidated in roughly an hour as BTC fell below $77,000, Bitcoin Magazine reported. Most of the positions were long bets, meaning traders had expected prices to rise.

Other cryptocurrencies also fell during the sell-off. Ether slipped below $2,300, XRP dropped more than 5% to $1.25, while Dogecoin and Solana declined 6.5% and 6%, respectively. HYPE recorded a 10% loss.

BTC USD Price Prediction: Will Bitcoin Fall Below $75,000

The $75,000 level is the next price area traders are watching. Bitcoin Magazine noted that it had acted as support during election night and on several occasions since August.

A move below that level could take Bitcoin closer to its lowest prices in months. The market is also looking ahead to the October jobs report on Friday and the October consumer price index release on November 10. The Federal Reserve is scheduled to make its next decision on December 9.

Bitcoin's latest retreat has put its recovery in question. Whether buyers can defend the $75,000 area will be an important test after another volatile stretch for the cryptocurrency.