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Why Bitcoin Fell With Tech Stocks After the Election

BY | ETF Database
10:01 am ET 11/10/26 | 3 VIEWS
Bitcoin took last week’s Democratic election sweep in stride, but a sell-off in artificial intelligence stocks on November 5 pulled it down just over 5%, according to CoinShares.Key Takeaways: Semiconductor stocks lost 12% on November 5, while bitcoin fell just over 5% during the AI-led sell-off. Miners that pivoted toward AI and data centers posted double-digit declines as that trade wobbled. October payrolls of 165,000 beat forecasts and kept pressure on the rate expectations that bitcoin tracks closely. The Nasdaq fell 5.5% that day, while the Nasdaq 100 dropped 6.4% and semiconductor stocks lost 12%, the firm reported. The slide also wiped out more than $1 billion in leveraged crypto positions. CoinShares Head of Research James Butterfill didn’t see the drop as a crypto-specific breakdown. Instead, he wrote, bitcoin got caught in a broader retreat from tech. For bitcoin, he added, inflation-adjusted interest rates, dollar liquidity, and flows into exchange-traded products still matter more than the makeup of Congress. Bitcoin miners took some of the hardest hits, CoinShares noted. Many have pitched themselves as AI and data-center businesses, and several fell by double digits as the AI trade wobbled. Their power and data-center infrastructure appeals to AI hyperscalers, the largest cloud computing companies, Butterfill wrote. But that same exposure leaves miners vulnerable when the AI trade comes under pressure. That overlap is the focus of the CoinShares Bitcoin Mining and Digital Power ETF (WGMI A-). The actively managed fund invests at least 80% of its net assets in miners, data-center operators, AI chipmakers, and power companies, CoinShares said. It doesn’t hold bitcoin itself. Cipher Digital Inc. (CIFR), Nebius Group (NBIS), and Hut 8 Corp. (HUT) were WGMI’s largest holdings as of November 10, CoinShares reported. See more: Why Bitcoin Miners Stopped Tracking Bitcoin’s Price For direct exposure, the CoinShares Bitcoin ETF (BRRR ) holds bitcoin on behalf of its trust, the firm said. It aims to track the CME CF Bitcoin Reference Rate – New York Variant, a once-a-day benchmark price. Their paths have split. Over the year ended September 30, WGMI’s net asset value rose 1.6%, while BRRR’s fell 26.8%, according to CoinShares.Strong Jobs Report Keeps Rate Pressure on BitcoinThe tech rout briefly gave markets reason to think the Federal Reserve might soften its stance, CoinShares wrote. That hope faded on November 6, when the October jobs report showed employers added 165,000 jobs. Economists had expected roughly 65,000, according to the firm, while unemployment edged down to 4.1%. With inflation still elevated, that kind of hiring gives the Fed more room to focus on prices rather than growth, Butterfill wrote. Bitcoin, he added, remains highly sensitive to shifts in short-term rate expectations. The election matters more for the pace of crypto regulation than for bitcoin’s direction, according to CoinShares. The CLARITY Act, a bill setting clearer rules for digital asset markets, now faces a harder path. Bitcoin’s regulatory status, though, is already well established. Butterfill pointed out that the administration still holds broad executive authority. A frustrated president may lean more heavily on foreign policy and executive action, he wrote, “hardly a recipe for lower market volatility.” For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.

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