As declines in Wall Street tech stocks triggered widespread margin calls in the crypto market and reignited concerns about market prospects, Bitcoin and Solana gave back some of their gains from Wednesday.
On Thursday, after a significant sell-off in U.S. technology and artificial intelligence stocks that also affected the cryptocurrency market, Bitcoin and Solana lost the gains they made from the unexpected rebound on Wednesday.
Bitcoin fell by about 6% to $75,200, below the $76,000 level; Solana also fell by over 6% to $88.50, dropping below $89. Both assets reversed their upward trends from Wednesday. On Wednesday, after the U.S. mid-term elections, Bitcoin briefly surpassed $80,000, and the market also believed that the $6.3 billion Binance hacking incident did not cause significant disruption to the market afterward.
Official Trump ( TRUMP ) meme coins also tumbled significantly, hitting a historic low of $1.12 after the mid-term elections. According to CoinGecko data, the token has fallen by more than 20% in the past week.
$1.27 billion in crypto margin calls hit tradersA sharp market decline triggered a widespread forced liquidation of leveraged crypto positions. According to CoinGlass data, over the past 24 hours, 241,244 traders experienced forced liquidations, resulting in total losses of $1.27 billion. The largest single forced liquidation occurred in the ETHUSDT market at Binance, involving a position worth $10.94 million.
Wall Street AI selling pressure spreads to the crypto marketThis round of decline in cryptocurrencies coincided with a massive sell-off in the U.S. stock market; investors are re-evaluating the sustainability of the artificial intelligence investment boom. The Nasdaq 100 index tumbled 6.3%, with a market value evaporating by about $2.3 trillion; the S&P 500 index fell 4.4%, resulting in another loss of about $2.8 trillion in market value.
Both the Nasdaq 100 index and the S&P 500 index recorded their worst single-day performances since April 2025. At that time, U.S. President Donald Trump announced global tariff measures, which put financial markets under pressure. This selling pressure accelerated further after the victory of Democratic candidates who criticized the expansion of AI, and also intensified market concerns about the investment prospects in the tech sector.
In addition to the short-term market reactions, the results of the mid-term elections may also complicate the regulatory prospects for cryptocurrencies in the United States. The Democratic Party's position in Congress has been strengthened, which means that bipartisan cooperation will become absolutely necessary if substantial progress is to be made in crypto legislation over the next two years.
Despite the uncertain prospects for the CLARITY legislation, analysts expect that the existing regulatory framework will remain largely unchanged until the next electoral cycle arrives. Reports indicate that although the election results may slow down the legislative process, this may not necessarily weaken institutions' long-term demand for digital assets.
US spot ETF recorded a net outflow of $535 millionInstitutional investment products also reflect a deterioration in market sentiment. On Thursday, there was a net outflow of approximately $535 million from US spot ETF. Of this, Bitcoin ETF saw an outflow of about $430 million, and Solana ETF had an outflow of around $1.18 million.
The outflow of funds reversed some of the positive momentum from Wednesday. On Wednesday, Bitcoin ETF recorded a net inflow of $74.5 million, during which time Bitcoin briefly returned above $80,000.
Meanwhile, Solana ETF continues to face capital outflows. Since October 1st, among 26 trading days, Solana ETF has only recorded net inflows on 2 days. Throughout October, its net outflow amounted to 143.7 million US dollars, marking the worst single-month performance on record.
Meanwhile, the Fear & Greed Index for CoinMarketCap reads 32, remaining unchanged from the previous day, indicating that market participants are still in a state of fear.
