- 1. Quick Answer: Why Is Crypto Down Today?
- 2. Reason 1: AI and Chip Stocks Crashed After the Midterms
- 3. Reason 2: Bitcoin and Ether ETFs Saw Heavy Outflows
- 4. Reason 3: A Leverage Flush Wiped Out More Than $1 Billion
- 5. Reason 4: Democrats Take Congress, and US Crypto Rules Look Slower
- 6. Reason 5: Oil, Rates and Today's Jobs Report
- 7. Which Coins Are Down Most This Week?
- 8. Is This the Start of a Bigger Crash?
- 9. What Are the Signs of a Crypto Crash?
- 10. Can Bitcoin Go to Zero?
- 11. If Crypto Crashes, Where Does the Money Go?
- 12. When Will Crypto Recover?
- 13. Bottom Line: Why Is Crypto Down Today?
- 14. Frequently Asked Questions
Last Updated: November 6, 2026
Quick Answer: Why Is Crypto Down Today?
Crypto is down today because a crash in US tech and chip stocks spread to digital assets. On Thursday, November 5, the Nasdaq Composite fell 5.52% on fears of tighter AI and data-center rules after Democrats won Congress. The total crypto market lost 4.99% in 24 hours, to about $2.55 trillion, according to CoinMarketCap at about 09:51 UTC on Friday, November 6.
Bitcoin trades at about $76,021, down 5.32% in 24 hours, after it fell back below $80,000 on Thursday. Ethereum is down 7.24% at about $2,238, XRP 9.18% at about $1.197 and Solana 6.67% at about $90.11.
What happened to crypto today is a broad, leveraged sell-off. Investors pulled $430.2 million from US spot Bitcoin ETFs and about $100 million from spot Ether ETFs on Thursday, according to Farside Investors and SoSoValue. About $1.09 billion of positions were liquidated in 24 hours, according to CoinGlass data reported by FinanceFeeds.
The Crypto Fear and Greed Index from alternative.me fell to 28, Fear, on November 6, from 50, Neutral, a day earlier. Below are the five main reasons behind the drop. For the bigger picture behind this year’s slide, read our explainer on why crypto is crashing in 2026 and whether it will recover.
Reason 1: AI and Chip Stocks Crashed After the Midterms
US stocks had their worst day in more than a year on Thursday. The Nasdaq Composite fell 5.52% to 24,315.00, more than 10% below last month’s high, which puts it in correction territory. The Nasdaq 100 lost 6.4%, the S&P 500 4.36% and the Dow 3.44%, Seoul Economic Daily reported, citing The Wall Street Journal and the Financial Times.
Chip stocks led the fall. The Philadelphia Semiconductor Index dropped 12.3%, its biggest one-day loss since March 2020. SanDisk fell 21.8%, AMD 17.4%, Micron 17.3% and Nvidia 9.2%, according to Seoul Economic Daily.
The trigger was the election. Democrats won control of both the House and the Senate in the November 3 midterms, NBC News and The Washington Post reported, and investors fear tighter rules for AI and data centers. Seoul Economic Daily counted 34 of the 36 governors elected that day backing some form of data-center regulation, and 40 of 41 ballot measures to restrict or regulate data centers passing.
Crypto often falls with tech stocks in sharp sell-offs, as investors cut risk across their holdings. Crypto stocks fell too: Strategy and Coinbase shares were each down about 10% in Thursday afternoon trading, The Block reported. Analysts at FalconX and GSR pointed to worries about slowing AI infrastructure spending, FinanceFeeds reported.
Reason 2: Bitcoin and Ether ETFs Saw Heavy Outflows
US spot Bitcoin ETFs lost a net $430.2 million on Thursday, according to Farside Investors data reported by Gate News, and no fund had inflows. Fidelity’s FBTC lost the most, $199.9 million. That reversed Wednesday’s $74.6 million inflow, which had ended three days of outflows.
Over the five trading days from October 30 to November 5, the Bitcoin funds lost about $1.51 billion, including about $1.04 billion from IBIT. Spot Ether ETFs lost about $100 million on Thursday, led by $75.2 million from BlackRock’s ETHA, according to SoSoValue.
Outflows matter because the funds sell or hand back the coins behind redeemed shares, the opposite of the buying that inflows bring. Our Bitcoin News Today page has the fund-by-fund breakdown.
Reason 3: A Leverage Flush Wiped Out More Than $1 Billion
Falling prices forced traders out of borrowed bets. About $1.09 billion of crypto positions were liquidated in the 24 hours through November 5, including $955.6 million of long positions, or about 88%, according to CoinGlass data reported by FinanceFeeds. About 210,000 traders were affected. Bitcoin accounted for about $282.3 million and Ether about $173.7 million.
A liquidation happens when an exchange closes a leveraged position because the trader’s margin no longer covers the loss. Those forced sales push prices lower, which can trigger more liquidations. The Block noted that public liquidation data may understate the real total.
Traders were already using less leverage. Ether open interest on tracked exchanges is about $11.4 billion, down from nearly $16 billion in late September, according to CryptoQuant data cited by crypto.news. Enough borrowed money was left to deepen the drop.
Reason 4: Democrats Take Congress, and US Crypto Rules Look Slower
The election also clouds the outlook for US crypto laws. Democrats will control both chambers when the new Congress starts on January 3, 2027. Sen. Elizabeth Warren, who has opposed the CLARITY Act, is expected to chair the Senate Banking Committee, The Wall Street Journal reported, according to crypto.news. That is not final.
Analysts cited by KuCoin News see the CLARITY Act market structure bill as unlikely to pass in its current form under her chairmanship. The bill lapses when the current Congress ends on January 3 unless the Senate acts first.
Not everyone expects a sharp change. Paul Howard of Wincent said Democrats’ stronger position may require bipartisan deals on crypto, and he expects the current rules to stay largely in place until the next election cycle, The Block reported. A KuCoin daily report counted 245 pro-crypto candidates elected, 226 in the House and 19 in the Senate.
Reason 5: Oil, Rates and Today’s Jobs Report
Macro pressure added to the selling. Oil rebounded amid the US-Iran conflict, with WTI settling at $90.52, up 2.72%, and Brent at $98.29, up 3.88%, Seoul Economic Daily reported. Higher energy prices can keep inflation high and make rate cuts less likely.
The Bank of England raised its main rate by 0.25 percentage points to 4.00% on Thursday, its first hike since August 2023, as expected. Our report on the Bank of England rate hike explains the energy shock behind it. In the US, the Federal Reserve held its range at 3.75% to 4.00% on October 28, with two officials voting for a hike.
Traders now wait for the US October jobs report, due at 8:30 a.m. ET (13:30 UTC) today and not yet out at the time of writing. Economists surveyed by FactSet expect about 65,000 new jobs after 29,000 in September. Weekly jobless claims came in at 189,000, below the 196,000 expected, according to a KuCoin daily report.
Which Coins Are Down Most This Week?
| Coin | Price | 24h | 7d |
|---|---|---|---|
| Official Trump (TRUMP) | $1.215 | -4.38% | -21.74% |
| MemeCore (M) | $0.8330 | +0.40% | -17.04% |
| Hyperliquid (HYPE) | $77.81 | -6.81% | -14.88% |
| NEAR Protocol (NEAR) | $3.721 | -7.58% | -14.71% |
| Worldcoin (WLD) | $0.3440 | -9.01% | -14.43% |
| Ethena (ENA) | $0.1637 | -9.66% | -14.16% |
| Kaspa (KAS) | $0.03036 | -5.31% | -9.58% |
| Curve DAO Token (CRV) | $0.2573 | -7.00% | -9.29% |
| Celestia (TIA) | $0.4232 | -8.78% | -9.08% |
| Artificial Superintelligence Alliance (FET) | $0.1495 | -5.30% | -8.84% |
Prices from CoinMarketCap at about 10:03 UTC on November 6, among the 100 largest coins by market value, excluding 14 stablecoins and gold tokens. Six of the remaining 86 coins lost more than 10% this week, and 61 are lower over seven days. The median coin is down 2.22% over seven days and 18.48% over 30 days.
Bitcoin was down 2.09% over seven days and 9.26% over 30 days in the 09:51 UTC snapshot, so the typical large altcoin has fallen about twice as far as Bitcoin this month. The selling is broad: 79 of the 86 coins fell over 24 hours.
A few coins rose this week: Pieverse is up 44.77%, Lighter 21.42%, Stacks 18.28% and Injective 14.47%, after Canary’s staked Injective ETF began trading on Nasdaq.
The Official Trump (TRUMP) memecoin hit an all-time low on Thursday after falling more than 20% over two days, The Block reported. For coin-level coverage, see Why Is Bitcoin Down Today?, Ethereum News Today, XRP News Today and Crypto Market Today.
Is This the Start of a Bigger Crash?
Not on the data so far, but the risk has risen. Bitcoin is down 9.26% over 30 days and 39.75% below its all-time high of $126,198 from October 6, 2025, according to CoinMarketCap. Thursday’s close of about $75,942 was its lowest since September 15, yet still above that day’s low of about $74,945.
Thursday’s $1.09 billion of liquidations was also smaller than the more than $1.5 billion wiped out after the Binance hack, Bitcoin.com News reported at the time. For an earlier example of a forced sell-off, see how Bitcoin dropped below $73K as $930M in positions were liquidated.
The bigger risk is the stock market. The Nasdaq is in correction territory, and crypto has moved with tech stocks this week. Wintermute sees $73,000 and then $68,000 as the next downside levels for Bitcoin, The Block reported, and it would turn more positive only if Bitcoin reclaims and holds $80,000.
What Are the Signs of a Crypto Crash?
No single signal predicts a crash, but several tend to appear together before large declines:
- Extreme readings on sentiment gauges. Long stretches of Extreme Greed, above 75 on the Crypto Fear and Greed Index, often come before sharp corrections. Today’s reading is 28, Fear. Our guide to the Crypto Fear and Greed Index explains how to read it.
- Heavy leverage. Record open interest and high funding rates mean a small drop can force liquidations, which push prices lower. On November 5, about $1.09 billion of positions were liquidated in 24 hours, mostly longs, according to CoinGlass data.
- Sustained ETF and exchange outflows. Several days of fund redemptions show that large buyers are stepping back. US spot Bitcoin ETFs lost about $1.51 billion over the five trading days to November 5.
- A shock to a major platform. Exchange failures and hacks, such as FTX in 2022 and Binance in 2026, hit confidence across the market.
- Macro stress. Rising rates, falling tech stocks and geopolitical shocks usually drag on crypto. This week brought all three: a Bank of England hike, a Nasdaq correction and an oil rebound amid the US-Iran conflict.
Can Bitcoin Go to Zero?
In theory, yes, but it would require the network to stop being used or to be broken. Bitcoin has run since January 2009, trades on hundreds of exchanges and is held by US spot ETFs and public companies such as Strategy, which held 849,327 BTC on November 1. Even after Thursday’s drop, its market value is about $1.53 trillion, according to CoinMarketCap.
Bitcoin has fallen more than 75% from its peak several times, including in 2018 and 2022, and recovered each time, but past recoveries do not guarantee future ones. Many smaller tokens have gone to zero, which is why diversification and position size matter more than predictions.
If Crypto Crashes, Where Does the Money Go?
The money does not move to a single place. A price is set by the last trade, so when sellers accept lower prices, the market value of every coin of that type falls, and much of the lost value simply disappears on paper.
Sellers who exit usually move into stablecoins such as USDT or USDC, or into cash at an exchange. Stablecoins were worth about $289.1 billion on November 6, according to CoinGecko data cited by Coin Gabbar. Buyers on the other side of those trades now hold the coins at lower prices. Leveraged traders who are liquidated lose their collateral to the exchange and to the traders who took the other side.
When Will Crypto Recover?
No one can time it, but traders are watching five signals:
- Today’s US jobs report. The October report is due at 13:30 UTC. Economists surveyed by FactSet expect about 65,000 new jobs and unemployment at 4.2%. October consumer prices follow on November 10, according to the Bureau of Labor Statistics, ahead of the Fed’s December 8 and 9 meeting.
- A floor in AI and chip stocks. The Nasdaq is in correction territory after Thursday’s 5.52% fall, and crypto has moved with tech stocks this week.
- ETF inflows returning. Spot Bitcoin ETFs lost $430.2 million on November 5 and about $1.51 billion over five trading days.
- Bitcoin back above $80,000. Wintermute would turn more positive only if Bitcoin reclaims and holds that level, The Block reported.
- Binance’s recovery. Binance says it has replenished 98% of the stolen $6.3B, and withdrawals keep reopening after the hack. On Friday, Binance said the zero-knowledge proof for its November 4 reserves snapshot, covering 44 tokens, has been generated, TechFlow reported.
Our crypto news today page tracks these events as they happen, and our crypto price prediction tracker collects published forecasts for the major coins. Before acting on rumors about hacks or exchange failures, check them against primary sources; our guide on how to verify crypto news and rumors explains how.
Bottom Line: Why Is Crypto Down Today?
Crypto is down today because the worst US stock sell-off in more than a year spread to digital assets. Fears of tighter AI and data-center rules after Democrats won Congress sank chip stocks, and Bitcoin fell back below $80,000 to trade near $76,021 on Friday morning.
ETF outflows of $430.2 million, more than $1 billion of liquidations, a slower outlook for US crypto laws and higher oil prices added to the pressure. The Fear and Greed Index fell to 28, Fear. The next big test is the US jobs report at 13:30 UTC.
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets are volatile; always do your own research before investing.
Frequently Asked Questions
Why is the crypto market down today?
The crypto market is down about 5% in 24 hours, to about $2.55 trillion, because a crash in US tech and chip stocks spread to digital assets. The Nasdaq fell 5.52% on Thursday on fears of tighter AI rules after Democrats won Congress. Bitcoin ETF outflows of $430.2 million and about $1.09 billion of liquidations added to the drop.
Is the stock market crash dragging crypto down?
Yes, mostly. Crypto fell with US stocks on Thursday, November 5, when the Nasdaq dropped 5.52% and the Philadelphia Semiconductor Index lost 12.3%, its biggest one-day fall since March 2020. Investors feared tighter rules for AI and data centers after the midterms. Strategy and Coinbase shares fell about 10% in afternoon trading, The Block reported.
What happened to crypto today?
Bitcoin traded near $76,021 at 09:51 UTC on November 6, down 5.32% in 24 hours, according to CoinMarketCap, after it fell back below $80,000 on Thursday. Ethereum fell 7.24% and XRP 9.18%. The total market lost 4.99%, to about $2.55 trillion, and the Fear and Greed Index dropped to 28, Fear, from 50 a day earlier.
Why is BTC down today?
Bitcoin is down 5.32% over 24 hours because the stock market sell-off spread to crypto and investors pulled $430.2 million from US spot Bitcoin ETFs on Thursday. About $282.3 million of Bitcoin positions were liquidated, according to CoinGlass data. Thursday’s low of $75,114 was its weakest price since September 16, and it now trades near $76,021.
Is crypto crashing?
Not on the data so far, but it is a sharp sell-off. The market lost about 5% in a day, and the median large coin is down about 18.5% over 30 days. Bitcoin is down 9.26% over 30 days and about 40% below its October 2025 record. It still trades above its September 15 low of about $74,945.
Can Bitcoin go to zero?
In theory yes, but it would require the network to stop being used or to be broken. Bitcoin has run since 2009, trades on hundreds of exchanges and backs large US ETFs. It has fallen more than 75% several times and recovered, though past recoveries do not guarantee future ones, and many smaller tokens have gone to zero.
If crypto crashes, where does the money go?
Most of the lost value disappears on paper because prices are set by the last trade, so a lower price reduces the value of every coin. Sellers usually move into stablecoins or cash. Buyers hold the coins at lower prices, and leveraged traders who are liquidated lose their collateral to the exchange and to traders on the other side.
Why are altcoins falling more than Bitcoin?
Smaller coins have thinner order books and more leveraged, speculative trading, so selling moves their prices further. In risk-off periods, investors also tend to rotate into Bitcoin or stablecoins. Over 30 days, Solana is down 23.52% and XRP 17.57%, against 9.26% for Bitcoin, according to CoinMarketCap at about 09:51 UTC on November 6.
When will crypto recover?
No one can predict it. Traders are watching today’s US jobs report at 13:30 UTC, whether AI and chip stocks stop falling, whether spot Bitcoin ETFs return to inflows, and whether Bitcoin can reclaim and hold $80,000, the level Wintermute flagged. Consumer prices on November 10 and the Fed’s December 8 and 9 meeting come next.
Data sources:
- CoinMarketCap (prices, market capitalization and changes at about 09:51 UTC on November 6; coin table at about 10:03 UTC; daily data)
- alternative.me (Fear and Greed Index)
- Seoul Economic Daily, citing The Wall Street Journal and the Financial Times (US stocks, oil, data-center votes)
- NBC News and The Washington Post (midterm results)
- KuCoin daily report and KuCoin News (Bank of England, jobless claims, pro-crypto tally, CLARITY Act outlook)
- Farside Investors via Gate News and SoSoValue (ETF flows)
- CoinGlass via FinanceFeeds and The Block (liquidations)
- crypto.news (CryptoQuant open interest data, Wall Street Journal report on the Senate Banking Committee)
- The Block (Wintermute, Wincent, crypto stocks, TRUMP) and FinanceFeeds (FalconX and GSR)
- Bitcoin.com News (post-hack liquidations) and CoinGecko via Coin Gabbar (stablecoins)
- Strategy 8-K filing with the SEC, Binance Recovery Updates #8 and #9, and TechFlow (reserves proof)
- Nation Thailand (Fed decision), FactSet (jobs forecast) and Bureau of Labor Statistics (calendar)
