Bitcoin Drops Below $77,000 as Chip Sell-Off Deepens

Bitcoin fell below $77,000 in Asian trading Tuesday, erasing its recovery from Monday. The cryptocurrency traded below the roughly $77,600 level reached late Sunday.

The decline came as U.S. semiconductor stocks extended a three-session sell-off. A gauge of chipmakers fell 12% over that period, while the Nasdaq 100 dropped about 10% from its peak, meeting the commonly used definition of a technical correction. The S&P 500 fell 0.5%.

Bitcoin has traded in line with technology stocks during this year’s market swings. The decline in semiconductor shares reduced demand for riskier assets linked to artificial intelligence and technology, including cryptocurrencies.

Apple and Palantir reported earnings on Nov. 2. U.S. voters are heading to the polls on Nov. 3 for the midterm elections, and the October employment report is scheduled for Nov. 6. The events could affect expectations for technology stocks, crypto legislation and the Federal Reserve’s interest-rate decision in December.

A Democratic majority could delay crypto legislation, including the CLARITY Act, if lawmakers continue to seek stronger ethics provisions. The election’s effect on crypto policy has not been confirmed.

Bitcoin remained above its 100-day moving average, which stood at about $76,463 on Nov. 1. Traders are watching that level and the $77,000 mark. A sustained close below the moving average would be Bitcoin’s first in several months. Holding above it would keep the cryptocurrency within the range established after its decline from $80,000.

Ether traded near $2,250, down about 1.7%, while most major altcoins also declined. XRP fell less than 1%.

The semiconductor sell-off has also affected crypto projects and tokens linked to artificial intelligence, computing capacity and tokenized infrastructure. Bitcoin’s supply dynamics have not changed. Exchange outflows have reduced the amount of Bitcoin held on trading platforms, which some analysts view as evidence that long-term holders are moving coins into storage.

Traders are monitoring the midterm results, semiconductor stocks and whether Bitcoin remains above $76,463 through the week. The October employment report is due Nov. 6.