Major cryptocurrencies experienced a sharp decline on Thursday, mirroring a broader sell-off in the stock market. Investors reacted to concerns about the AI sector, particularly after Democratic control of Congress raised questions about data center construction, especially in Texas. Bitcoin (BTCUSD) dropped 5.40% to $75,968.64, marking its lowest level since mid-September. Ethereum (ETHUSD) fell 7.50% to $2,231.59, while XRP (XRPUSD) declined 6.50% to $1.21. Other notable losses included Solana (SOLUSD) at -6.00% and Dogecoin (DOGEUSD) at -6.20%.
The sell-off extended to crypto-related stocks, with Strategy Inc. (MSTR) and Bitmine Immersion Technologies Inc. (BMNR) closing down 9.29% and 12.56%, respectively. Approximately $1.2 billion was liquidated from the leveraged crypto market, with $1.10 billion of that coming from long positions. Bitcoin's open interest fell 1.78% over the last 24 hours, despite retail and whale derivatives traders on Binance turning "Extremely Bullish."
Market sentiment has reverted to "Fear," as measured by the Crypto Fear & Greed Index. Analyst Michaël van de Poppe noted that Bitcoin held up relatively better than the Nasdaq, with its decline comparable only to the March 2020 crash. He projected a Bitcoin bottom on Friday, potentially after sweeping the $75,000 level. Meanwhile, on-chain analytics firm Santiment observed that Bitcoin was moving against crowd expectations, with bullish social commentary initially spiking before a sharp price decline triggered bearish discussions.
Among the few gainers, Bitway (BTW) rose 10.90% to $1.14, Rain (RAIN) increased 6.80% to $0.006362, and Lighter (LIT) gained 1.30% to $3.39. The broader stock market also saw significant losses, with the Dow Jones Industrial Average plunging 1,833.06 points, or 3.44%, the S&P 500 shedding 4.36%, and the Nasdaq Composite falling 5.52%.