Bitcoin Sinks to a Seven Week Low Near $75,100 as Wall Street Wipes Out Its Post Election Rally

Risk assets turned sharply on Thursday, and Bitcoin dropped more than 6.7% to $75,160, its weakest price since Sept. 16. The slide started around the opening bell in New York, when stocks gave back the gains they had made after the midterms.

Why US Stocks Reversed Course

Equities rallied earlier in the week as Democrats won both the House and the Senate, but traders then rotated out of technology shares. The S&P 500 lost 4%, while the Nasdaq Composite fell over 4%, its lowest point since July 29. Oil moved higher after reports of fresh attacks on tankers in the Middle East and doubts about how Democrats might handle the war with Iran.

Bitcoin Tests a Key Support Level

The drop briefly took Bitcoin below its 50 week simple moving average, sitting at $75,733, a line that has acted as support and now faces pressure. TradingView data from Bitstamp shows the move erased the climb above $80,000 seen a day earlier.

What Traders Are Watching

Whether Bitcoin can close above that average will matter for short term direction. Moves in tech stocks and oil prices are likely to steer sentiment, and traders are also waiting for Friday’s US jobs report.