The price of Bitcoin fell as much as 5.8% on Nov 5, closing below $76,000 and hitting its lowest level since early October. The slump was fueled by a sudden surge in withdrawals from digital asset products, with investors pulling a total of $1 billion from spot Bitcoin exchange-traded funds, including approximately $900 million from BlackRock’s IBIT.

The rout followed a sharp decline in the Nasdaq 100, which fell 6.4% as fears grew that the Democrats’ midterm victory would result in tighter AI regulation. This risk aversion spread to the crypto market, triggering more than $870 million in the liquidation of leveraged positions and reducing the total crypto market valuation by $140 billion over four hours. The selloff was further compounded by concerns over a security breach at Binance and the erasure of gains seen after the election.