Historical report based on Tyler Warner’s Morning Minute, published by Decrypt on November 6, 2026, at 21:29:20 UTC+8. Market figures below reflect that report, not current prices.
Bitcoin’s post-election rebound proved short-lived. After climbing above $80,800 on Wednesday, it fell 5.4% to $75,871 on Thursday—below its pre-election level—as a sharp selloff in AI-related stocks spread across risk assets.
The reversal exposed how quickly a political narrative could change: the Democratic congressional outcome initially accompanied a rally, then became a reason for investors to reassess the pace of AI infrastructure expansion.
The AI buildout meets permitting concerns
Thursday’s equity losses were substantial:
- The S&P 500 fell 4.36%, its worst session since the April 2025 Liberation Day tariffs.
- The Nasdaq dropped 5.52%, closing more than 10% below its record from the previous month.
- The Dow lost 1,833 points.
- The iShares Semiconductor ETF declined more than 12%, its worst day since March 2020.
Micron fell 17.5%, AMD 17.3%, Marvell 16.4% and Nvidia 9.3%. The Magnificent Seven collectively shed roughly $1 trillion in market value. Across U.S. equities, the report put the day’s loss at $3 trillion—more than the entire crypto market’s capitalization. The VIX reached 28.09 intraday, its highest since March.
Warner linked the change in sentiment to concerns about slower permitting and tighter oversight of AI infrastructure. Several states won by Democrats had active local opposition to data center construction.
“We suspect there is going to be some scrutiny on this aggressive AI buildout,” Swissquote’s Ipek Ozkardeskaya said.
That was an explanation for investor expectations, not evidence that new restrictions had already taken effect. December rate-hike odds also fell, from 82.7% to 70.1%, according to the newsletter.
Crypto offered little insulation
Ethereum fell 7.6% to $2,239, XRP lost 9.8%, and Hyperliquid declined 4.9%. The CMC20 index dropped 6.29%. The newsletter reported roughly $1.1 billion in liquidated crypto longs, followed by a modest overnight relief rally.
Bitcoin ETFs recorded $430 million in net outflows on Thursday, while Ethereum ETFs saw $100 million leave.
The observable outcome was a broad crypto decline alongside equities. The report did not establish how much of the crypto move was caused by AI concerns, political expectations or forced liquidations individually.
Privacy coins were relatively resilient, but were not immune: Zcash fell 0.8% and Monero 2.2%. Both remained higher for the week. Over the preceding year, Zcash was up 146% and Monero 74%, while Bitcoin and Ethereum were down 26% and 34%, respectively.
Those figures supported relative outperformance over the stated periods—not a guarantee that the privacy-coin narrative would keep attracting demand.
Political scrutiny becomes a separate crypto risk
Representative Robert Garcia, who was expected to chair House Oversight under the new Democratic majority, said the committee would investigate the Trump family’s business dealings, including crypto ventures.
World Liberty Financial was described as likely to be among the first targets, with inquiries possibly beginning in February. These were prospective investigations, not findings of misconduct.
The newsletter also reported that Trump-backed American Bitcoin posted a $126 million third-quarter profit after a $57.2 million second-quarter loss. A $197 million gain on its Bitcoin holdings drove the turnaround as prices rose—a distinction worth preserving when assessing how much reported profitability depended on asset-price movements.
The narrative changed faster than the evidence
The central contrast was between Wednesday’s confidence and Thursday’s repricing. The same election outcome accompanied two sharply different market interpretations within two sessions.
The selloff documented a reversal in expectations, not proof that AI investment would fail or that every crypto rally was a bubble. At publication, Friday’s October jobs report remained the next scheduled test of market sentiment.
Original article: Decrypt — “Morning Minute: Bitcoin Erases Election Rally as AI Stocks Crater”. The newsletter’s analysis and opinions were Tyler Warner’s and did not necessarily reflect those of Decrypt.