The crypto market endured a volatile first week of November, briefly gaining approximately $100 billion following the U.S. midterm elections before surrendering those gains amid a global technology stock sell-off, according to market data.
The crypto economy began the week with a market capitalization barely above $2.7 trillion. Bearish sentiment ahead of Election Day pushed it down to $2.67 trillion, but as initial U.S. election results pointed to a shift in power in Washington, the market staged a surprise rally led by bitcoin, which surged from just above $75,000 to $81,000. By Nov. 5, total market capitalization had approached $2.79 trillion.
Tech Sell-Off Reverses the Rally
As reports surfaced of proposed Democratic restrictions on crypto and data centers, technology stocks, especially those tied to artificial intelligence, plunged, erasing trillions in market value. By Friday, Nov. 6, total crypto market capitalization had dropped back below $2.64 trillion.
Bitcoin, which briefly dipped below $75,000 for the first time since late August, ended the week down 2.5%, falling from $77,845 to $75,877. Several other digital assets followed a similar pattern, posting gains during the post-election rally only to give them back after the technology stock sell-off.
Altcoins Under Pressure
Some assets suffered steeper losses than bitcoin. XRP briefly surpassed $1.32 before reversing course and sliding into Saturday, when it touched a multi-week low of $1.15, leaving it down more than 7% over the seven-day period.
- Hyperliquid (HYPE) fell more than 12%.
- XLM declined approximately 10%.
- BCH declined approximately 12%.
- NEAR dropped 15%.
- WLFI shed 7%.
Defensive Assets Outperform
A handful of digital assets outperformed the broader market. Tron (TRX) and the privacy coin zcash (ZEC) each gained approximately 3%, while gold-backed tokens XAUT and PAXG rose 4.6% and 4.1%, respectively.
