A selloff in tech and AI stocks spilled over into the cryptocurrency market, wiping out leveraged long positions and driving Bitcoin to its lowest intraday point since August.
Crypto traders betting on further price gains have endured a very costly few days.
More than $1 billion in leveraged positions were liquidated as Bitcoin, November 6, 2026.
The catalyst was not a security breach, a failed exchange, or a viral social media post. Instead, the pressure originated on Wall Street, where a sharp decline in US tech and AI stocks pulled the crypto market downward.
How the selloff unfolded
Bitcoin reached an intraday low of $74,780.91 on November 6, marking its weakest performance since August 21.
The world’s largest cryptocurrency shed nearly 6% during the session. Ethereum fared worse, sliding more than 7% to approximately $2,247.
XRP and Solana also fell below key support levels.
Long positions accounted for roughly $930 million of the total, or 88.2%.
Bitcoin positions represented about $267 million in liquidations during the session. Ethereum followed with approximately $167 million, while XRP and Solana contributed to the remaining losses.
Nearly 211,000 traders were impacted by these liquidations, with the majority of the losses occurring on major exchanges like Binance.
Why leverage turns a dip into a cascade
When a trader uses borrowed funds to amplify a position and the market moves against them, the exchange automatically closes the trade once collateral levels become insufficient. This forced exit is known as a liquidation.
The issue is that liquidating a long position requires selling the asset. This selling pressure drives prices lower, which in turn triggers a new wave of liquidations, leading to further selling.
This chain reaction explains how a market can lose $1 billion in leveraged bets in a matter of minutes, as noted in the viral report.
The Wall Street connection
The Nasdaq Composite dropped 5.5% amid volatility in AI and semiconductor stocks. Growing concerns regarding the growth trajectory of the AI sector collided with broader uncertainty following the midterm elections.
Bitcoin ETFs contributed to the downward pressure. The selloff occurred alongside significant outflows from these funds, providing an additional push to prices.
Market sentiment shifted in tandem with price action. The Fear & Greed Index, a common gauge of crypto market mood, moved into “fear” territory, reversing the bullish sentiment that had been building.
What this means for traders and investors
The primary takeaway concerns the risks of leverage rather than market direction. A nearly 6% decline in Bitcoin is not unusual by crypto standards. However, the lopsided 88.2% share of long liquidations indicates that the market was heavily crowded on one side leading into the drop.
The more significant narrative for investors is market correlation. Crypto’s performance this week was largely dictated by the movement of AI and chip stocks, rather than developments within the blockchain ecosystem.
