Bitcoin fell more than 6% on Friday as a sharp rout in US technology stocks spread into cryptocurrencies, wiping out a brief recovery above $80,000 and triggering widespread forced selling.
The Bitcoin price was around $75,400 at 12:47 am ET on Friday, down roughly 6% over 24 hours. CoinGlass figures showed approximately $1.09 billion in crypto derivatives liquidations on Thursday, affecting about 211,000 traders.
Most of those positions were bets on rising prices. With Bitcoin approaching $75,000, investors are asking whether the shakeout has removed enough leverage to support a recovery or whether another decline is approaching.
Why is Bitcoin crashing today as AI stocks tumble?
The selloff followed a 5.52% plunge in the Nasdaq Composite on Thursday , as investors questioned returns from enormous AI investments. The Philadelphia Semiconductor Index lost around 12%, reflecting the sudden change in sentiment.
Democratic victories in the US midterm elections raised concerns that greater scrutiny could delay data-centre construction.
Those restrictions remain a possibility, not an enacted policy, but worries about borrowing costs and stretched technology valuations were already growing.
Bitcoin often trades like a risk-sensitive asset during periods of market stress. Although advocates describe it as digital gold, leveraged investors can sell it alongside technology shares when liquidity tightens.
FalconX markets co-head Joshua Lim told CoinDesk on Thursday that fears of slower data-centre construction fuelled selling. He attributed Wednesday’s rally to “a lot of short-covering into a well-telegraphed result”.
Crypto-linked US equities also suffered large declines, reinforcing the breadth of investors’ retreat from risky assets.
That helps explain why the rebound above $80,000 vanished so quickly, as a recovery fuelled by short covering can reverse when broader confidence deteriorates.
Bitcoin liquidations today: How leverage deepened the crash
The $1.09 billion liquidation figure covers the wider cryptocurrency derivatives market. A separate Thursday CoinGlass snapshot put Bitcoin-specific liquidations near $281 million, with bullish positions accounting for most of the damage.
Across cryptocurrencies, crypto.news reported $954 million in long liquidations and $127 million in shorts. These rolling liquidation totals change constantly as prices move.
Liquidations happen when a leveraged trader’s collateral no longer meets exchange requirements. Automatic sales can push prices lower, causing further forced closures and creating a cascade beyond the initial market shock.
Bitcoin futures open interest fell below $26 billion from roughly $28 billion earlier on Thursday, which suggests that speculative positions were being closed or forcibly unwound.
GSR researcher Carlos Guzman told CoinDesk that a “pullback in risk appetite amplified by leverage” followed the relief rally.
These totals measure closed positions, not necessarily realised losses, and do not establish what initially triggered the crash. Liquidation data also vary between exchanges and reporting windows.
Bitcoin price prediction: Will $75,000 hold?
Buyers now face a test around $75,000. Analysts on Wednesday identified $75,001 as an important Fibonacci retracement level.
A sustained break could expose the 200-day moving average, estimated on Wednesday near $73,188. Wintermute trader Jasper De Maere identified $73,000 and $68,000 as possible downside levels, CoinDesk reported Thursday.
These levels are scenarios, not certain outcomes, as moving averages change daily. Analysts also identified earlier support near $62,000, though reaching it would require a much deeper correction.
A recovery through $78,000 and $80,000 would suggest returning demand. De Maere remained positive on medium-term adoption despite near-term risks.
Friday’s US jobs report, due at 8:30 am New York time, could reshape Federal Reserve expectations . Strong employment might support yields; weak figures could ease pressure on risky assets.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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