Over $1 billion in bullish bets liquidated while ETF flows suggest no help in spot market

Bitcoin's post-midterm bounce is fading. The cryptocurrency is down about 5.2% over the past 24 hours, now trading around $76,100.

The broader CoinDesk 20 (CD20) index is down 6.17% over the same period, as pressure from the AI trade weighed on prices.

The Nasdaq fell 5.5% on Thursday, its worst session since April 2025, and the selling carried into Asia, where South Korea's Kospi dropped as much as 8.8%, triggering a 20-minute trading halt.

With Democrats now controlling both chambers of Congress, investors worry that stronger opposition to data-center construction could slow the AI buildout. That weighs on bitcoin miners, many of which have pivoted to AI computing.

Leverage deepened the decline with more than $1.27 billion in crypto derivatives positions being liquidated over the past 24 hours. More than $1.1 billion of that were bullish bets.

Carlos Guzman, vice president of research at GSR, described the move as "a pullback in risk appetite amplified by leverage."

Institutional demand isn't filling the gap, with spot bitcoin ETFs recording $430.2 million in net outflows on Thursday. Bitfinex analysts had warned earlier this week that "sustaining this bounce requires actual spot demand."

Attention now turns to the October jobs report coming today. Economists expect 59,000 to 65,000 new jobs, up from September's 29,000. Markets are pricing roughly a 70% chance of a December Fed hike, so a strong number could add to the pressure.

Jasper De Maere, an OTC trader at Wintermute, sees $73,000 and $68,000 as potential downside targets and says bitcoin would need to reclaim and hold $80,000 to signal renewed strength. Stay alert!

What’s trending

Trump-backed World Liberty Financial plans token buyback after 66% year-to-date slide (CoinDesk): World Liberty Financial, the Trump-family backed crypto venture, plans to buy back more of its WLFI token after a steep price drop that followed the U.S. midterm elections.

Wall Street peers into abyss of AI trae as midterms expose risk (Bloomberg): Fears of the worst-case scenario for the AI trade kicked in after the US midterm elections, in which Democrats secured majorities in the Senate and House of Representatives and won control of state houses and governor’s mansions across the country.

Oil prices set for sharp weekly fall after midterm elections as investors weigh Iran conflict risk (CNBC): International benchmark Brent crude futures fell 1.38% to $96.93 per barrel by 4:38 a.m. ET, having jumped to almost $100 a barrel earlier in the session. U.S. West Texas Intermediate crude futures dropped 1.49% to $89.17 per barrel.

Today’s signal

Price has lost the 50W EMA (~$78.4k) as of now and is testing key weekly support at $75k - a weekly close below the 50W EMA typically signals a medium-term break in the bullish trend. No RSI divergences present, which is a constructive sign.