Bitcoin (BTC) gave back its post-midterm gains on November 5 as a sell-off in tech and AI stocks on Wall Street triggered more than $1 billion in liquidations. The same day, House Democrats were reported to be preparing a crypto market structure bill, and Amundi created a tokenized share class tracking a European equity index on Ethereum (ETH).
Bitcoin at $75,700 and over $1 billion in liquidations
Bitcoin fell 6% to $75,700, with a daily low of $75,568, and ether lost more than 7% to $2,247. The drop wiped out the rally of Wednesday, November 4, when Bitcoin had climbed back above $80,000 after the election and signs that the Binance hack had not caused wider disruption in the market.
In equities, CoinDesk recorded the worst US session since April 2025, with the Nasdaq down 5.5%, the S&P 500 down 4.3% and the Dow Jones down 3.4%. The Philadelphia Semiconductor Index fell 12%, and the VIX rose more than 50% to 28 points. In crypto, XRP and Solana (SOL) each lost about 5.5%.
Mining and AI-linked stocks were among the hardest hit. Bitdeer and Keel Infrastructure each dropped about 20%, and American Bitcoin fell 17% despite announcing a quarterly profit of $126 million. Strategy and Coinbase each declined about 10%, while the memecoin Official Trump (TRUMP) hit an all-time low after falling more than 20% in two days.
According to CoinGlass, $879.92 million in positions were liquidated within four hours, of which $818.90 million were longs and $61.02 million were shorts. Total liquidations over 24 hours reached nearly $1.1 billion and involved about 211,000 traders. Public data may understate the real size.
Wintermute reads Wednesday's rally as temporary optimism. Jasper De Maere, an OTC trader at the firm, said the factors behind it were short-lived and added: "Trump is still president for two years, the Middle East is escalating and inflation is high." The firm is watching $73,000 and $68,000 as the next levels and wants to see Bitcoin reclaim and hold $80,000 before turning more positive.
For us, the main reason for the drop is concern about tighter AI regulation. Democrats now have more power after the elections and can make it harder for liquidity to flow into AI, where much of the market has been invested in recent months. We do not expect a full ban, but a stricter framework is enough to scare investors.
Democrats plan a bigger SEC role in the crypto bill
According to journalist Eleanor Terrett, House Democrats plan to expand the Crypto Investor Consumer Bill of Rights, a Maxine Waters amendment to the Clarity Act, into a broader market structure bill. Her sources say the SEC would get more supervisory powers and the CFTC's role would be limited.
Stand With Crypto backed 45 candidates, with 27 wins, 12 losses and six races still open. Nearly half were Democrats. James Butterfill of CoinShares called the defeat of Republican Bryan Steil, chair of the House digital assets subcommittee, a "significant loss". Carlos Guzman of GSR believes passing the Clarity Act has become harder and that a deal will need stronger provisions on consumer protection and conflicts of interest. Butterfill thinks the industry depends less and less on the Clarity Act, since the SEC and the CFTC are pushing regulatory clarity without Congress.
We are uneasy about the shift toward the SEC. For more than five years the market has been fighting to establish that crypto assets are closer to commodities, overseen by the CFTC, than to securities, with the XRP case as the best-known example. A 180-degree turn would bring back the question of whether they are stocks after all.
Amundi puts a STOXX Europe 600 share class on Ethereum
Amundi, Europe's largest asset manager, announced on November 5 a tokenized share class of its fund tracking the STOXX Europe 600 on Ethereum. CACEIS provided the tokenization infrastructure, and the fund remains available through traditional channels as well. The index covers 600 large, mid and small-cap companies in developed European markets. We would compare it to the S&P 500 of Europe.
The move extends Amundi's offering beyond money market funds: its first tokenized money market fund share class was issued in November 2025, also with CACEIS on Ethereum. The company plans a wider range of tokenized funds for institutional clients and digital platforms. The value of tokenized stocks reached $4.24 billion on November 4, up almost 27% in 30 days, according to the RWA tracking platform. The ten largest products are all tied to US companies or securities. In April, 39 companies and organizations warned that the EU risks falling behind the US in tokenized finance. For Ethereum, this is one more client.
In brief
JPMorgan: JPMorgan Chase shares fell 4.08% to $337.75 on November 5, after reports that Senate Democrats plan an investigation into the bank's ties to Epstein. The drop almost erased the 4.18% election gain. The bank settled in 2023 for $365 million without admitting liability.
Novogratz and Galaxy: Mike Novogratz announced he is buying more shares of Galaxy Digital, which has lost 41% over the past month.
Macro: The odds of a Fed rate hike in December fell to 69%, from 95% in September, according to CME FedWatch. The Bank of England raised rates to 4%, unanimously.
The market
Bitcoin traded around $75,700 on November 5, after falling from the $81,000 level.