Bitcoin slips below $77K as tech selloff and midterm results weigh on markets

What happened

Bitcoin fell below $77,000 on Tuesday, November 3, losing about 2% during Asian trading hours and reversing a brief recovery from the previous day, Bitcoinist reported. The move came as technology stocks sold off and investors grew cautious ahead of the US midterm elections.

The weakness was not confined to crypto. A major US semiconductor index shed roughly 12% over three trading sessions, and the Nasdaq 100 was down about 10% from its recent peak, putting it in correction territory. South Korea's Kospi fell more than 3%, and other Asian markets also declined as investors cut exposure to riskier assets.

The selling continued after the vote. CryptoPotato reported that Bitcoin dropped to $76,700 after projected results cited by NBC News showed Democrats winning 51 Senate seats and flipping 30 Republican House seats, for a 244-191 majority.

Why it matters

The episode illustrates how closely Bitcoin has been tracking traditional risk assets. When technology shares come under pressure, crypto markets have tended to feel similar strain as investors adjust portfolios, despite Bitcoin's decentralized design. The election result adds a regulatory dimension: Democrats voted unanimously to block the Clarity Act in September, a bill that would have set standards for how crypto companies operate and how digital assets are classified as securities or commodities. Robert Garcia (D-Calif.) is set to chair the House Oversight Committee and has said he wants to investigate the Trump family's crypto ventures, including TRUMP coin.

Still, some observers see limits to the damage. Decrypt's Tyler D said the Democratic outcome is "not that bad" for crypto and that the industry's momentum is too large to stop. Analysts also note that the SEC and CFTC can provide practical clarity through approvals and guidance, even though neither agency can pass laws.

What the data shows

Bitcoinist reported a decline of approximately 2% during Asian hours on November 3, with the price below $77,000. It cited a roughly 12% drop in a major semiconductor index over three sessions, a Nasdaq 100 decline of about 10% from its peak, and a Kospi fall of more than 3%. CryptoPotato put Bitcoin at $76,700 after the vote and cited projected Senate and House totals of 51 and 244 seats for Democrats.

Background

The decline followed a difficult stretch for technology companies, particularly chipmakers, amid concerns about artificial intelligence spending that Reuters reported had contributed to selling pressure in US tech shares. Institutional flows have also weakened: US spot Bitcoin ETFs recorded about $643 million in net withdrawals on October 30, according to Bitcoinist. Investors were also preparing for the November 6 US employment report, giving Bitcoin several potentially market-moving events in a short span.

What is still unclear

It is not clear whether Bitcoin can hold the $76,000-$77,000 region that traders have treated as important support. A sustained recovery above $77,000 could improve short-term sentiment, while continued selling could push traders to look at lower levels. Price action alone cannot confirm whether a bottom has formed, and temporary rebounds do not necessarily signal a lasting reversal.

What to watch

Traders are likely to focus on technology stocks, the aftermath of the midterm results and institutional flows through spot Bitcoin ETFs for signs of improving confidence. The November 6 employment report is another scheduled event that could move markets. Bitcoin's next significant move may depend less on crypto-specific news than on how investors respond to the broader financial environment.

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