Bitcoin plummeted to $76,000, marking a significant downturn as the post-election sell-off wave swept through U.S. markets. The Nasdaq 100 recorded a steep loss of 5%, while the Nasdaq index itself decreased by nearly 4% and the S&P 500 fell by 2.2%.
Tech Stocks Take a Hit Amid Regulatory Fears
Chip manufacturers were notably impacted during the sell-off. Concerns emerged as the Democratic Party seized control of both houses of Congress, potentially paving the way for stricter regulations on the artificial intelligence sector. This led to an accelerated retreat from technology stocks, amplifying the day’s market woes.
Initially buoyed by a flight to safety, gold surged to $4,116 per ounce, only to retract some of its gains and fall below $4,100. Silver also slid, with its price per ounce dropping under $52, underscoring the broader commodity market’s volatility amid the sell-off.
Crypto-Linked Stocks Suffer Significant Losses
The ripple effect of the sell-off was keenly felt in crypto-linked equities. Coinbase suffered a 7.8% decline, while shares of Robinhood and Circle both plummeted by 10%. Strategy and Bullish also faced similar bearish sentiments, with their shares dropping by 8.3% and 7.7%, respectively.
Companies transitioning from Bitcoin mining to AI data centers witnessed double-digit declines. Keel Infrastructure recorded a 17% drop, and shares of Cipher Mining, IREN, Bitdeer, TeraWulf, and CleanSpark experienced losses hovering between 13% and 15%, reflecting a broader retreat from this sector.
“The pace of the market’s downturn highlights investor apprehensions about the potential policy shifts under the new congressional landscape,” noted a market observer.
The tumultuous trading day has left analysts speculating about the immediate future of both technology and cryptocurrency markets, as regulatory uncertainties loom large over these previously booming sectors.
