Bitcoin fell below $76,000 on Thursday as US spot Bitcoin and Ether exchange-traded funds recorded approximately $530 million in combined net outflows, reversing the previous session's positive flows, according to SoSoValue data.
Spot Bitcoin ETFs accounted for roughly $430 million in withdrawals, while Ether funds lost approximately $100 million.
Fidelity and BlackRock funds lead Bitcoin ETF outflows
Fidelity's Wise Origin Bitcoin Fund (FBTC) led Thursday's Bitcoin ETF withdrawals with approximately $200 million in outflows, reversing roughly $237 million in inflows recorded on Wednesday.
BlackRock's iShares Bitcoin Trust (IBIT) recorded another $105 million in net outflows, extending its withdrawal streak to five consecutive trading sessions. More than $1 billion has left the fund since October 30.
Broader market selloff
The selloff extended across traditional markets, with the tech-heavy Nasdaq Composite plunging 5.5%, its largest single-day decline since April 2025, according to Reuters. The index also entered correction territory as chipmakers slumped amid concerns over tougher AI regulation following Democrats' victories in the US midterm elections.
Thursday's outflows marked a sharp reversal from Wednesday, when the funds attracted $128 million in combined inflows as Bitcoin briefly climbed above $80,000 following the election results.
The simultaneous declines in crypto prices, ETF investment flows, and technology stocks suggest that post-election optimism quickly gave way to broader selling pressure.
Global risk appetite weakens
The selloff extended across global markets as investors reassessed the outlook for AI infrastructure spending following Democratic victories in Tuesday's midterm elections. Wins in states where opposition to new data centers has grown added to concerns that tighter regulation could slow the expansion that has supported technology stocks.
US technology shares led the decline. The Nasdaq 100 plunged 6.4%, wiping out approximately $2.5 trillion in market value, while the Nasdaq Composite fell 5.5%, nearly 12% below its October peak. Semiconductor stocks dropped 12%, with Nvidia losing 9%.
The pressure quickly spread to Asia. South Korea's KOSPI fell as much as 9%, triggering a temporary trading halt, while Taiwan's TAIEX also dropped around 9%. Japan's Nikkei 225 entered bear market territory after falling more than 20% from its peak.
The broader selloff reflected concerns about the outlook for AI spending, with investors questioning whether regulatory pressure could disrupt data center expansion and semiconductor demand. US markets also recorded heavy trading volume, with 26.9 billion shares changing hands, compared with a 20-session average of 17.7 billion.
Attention is now shifting to the October nonfarm payrolls report due Friday, which could influence expectations for the Federal Reserve's next policy decision. Fed officials Beth Hammack and Thomas Barkin also signaled that further rate increases remain possible, adding another source of uncertainty for risk assets.
