From Decrypt · By Tyler Warner
Morning Minute is a daily newsletter written by Tyler Warner. The analysis and opinions expressed are his own and do not necessarily reflect those of Decrypt. And check out our daily news show 'FOMO HOUR' covering all of the top stories and market action.
GM!
Today’s top news:
Crypto majors fall 4-6% as AI stocks crash; BTC at $76.1k
Over $1.1B in crypto longs liquidated on the day
Dems say they will investigate Trump business dealings, starting with WLFI
Solana Labs introduced Leap as a new mobile trading app
Lighter sees 2nd highest day of revenue since February
BitcoinBTC · USD$75,782−1.95%Oct 30Nov 1Nov 3Nov 4Nov 6$80.7k$79.0k$77.3k$75.6k24h HighHigh$79,79924h LowLow$75,230VolVol$2.0BMarket projectionsOdds by MyriadTodayAbove $76,000Above $76k50% chanceThis weekAbove $76,000Above $76k50% chance→Buy Bitcoin with USDCPowered by JupiterPrice data by CoinGeckoCoinGeckoMore Bitcoin news and projections →📉 Bitcoin Erases Election Rally as AI Stocks Crater
On Wednesday, the market decided a Democratic Congress was good news. Stocks had their best day in three months, Bitcoin climbed back over $80,800, and Trump posted on Truth Social that the market “just hit another Record High” with 401(k)s “through the roof.”
On Thursday, the market changed its mind.
The S&P 500 fell 4.36%, its worst session since the Liberation Day tariffs in April 2025. The Nasdaq dropped 5.52% and closed in correction, more than 10% below its record from last month. The Dow shed 1,833 points.
The damage concentrated in one place. The iShares Semiconductor ETF fell more than 12%, its worst day since March 2020. Micron lost 17.5%, AMD 17.3%, Marvell 16.4%, Nvidia 9.3%. The Magnificent Seven shed roughly $1 trillion in market value. The VIX touched 28.09 intraday, its highest since March. By the close, the U.S. stock market had lost $3T in value - more than the entire market cap of crypto.
Notably, the thing that spooked investors was the same election result that lifted everything a day earlier. Several states where Democrats won have active local opposition to data center construction, and the market spent Thursday pricing in slower permitting and tighter oversight of the AI buildout. Ipek Ozkardeskaya at Swissquote put it simply: “We suspect there is going to be some scrutiny on this aggressive AI buildout.” Rate expectations moved too, with December hike odds falling to 70.1% from 82.7%.
Crypto did not sit this one out. Bitcoin fell 5.4% to $75,871, below where it traded before the election. Ethereum dropped 7.6% to $2,239, a steeper fall than the Nasdaq. XRP lost 9.8%, and Hyperliquid fell 4.9%. The CMC20 index fell 6.29%. Almost $1.1B in crypto longs were liquidated on the day, before a slight relief rally overnight.