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The S&P 500 crash accelerated on Nov. 5 as U.S. stocks reversed their post-election advance. The Kobeissi Letter estimated that the index lost $2 trillion in market value within 40 minutes. Technology shares led the retreat after Democrats won control of Congress.
The reversal extended beyond equities as Bitcoin price declines tracked weakness across risk assets. Investors also faced questions about artificial intelligence spending, financing costs, and future policy decisions. The election result coincided with these pressures, but did not establish a single cause for the selloff.
S&P 500 Crash Erases the Post-Election Recovery
The Kobeissi Letter wrote on X that the S&P 500 erased $2.2 trillion over 55 minutes. Its estimate also placed Thursday’s losses above Wednesday’s post-election advance. These estimates measured market value, not realized investor losses.
Market data showed widespread weakness in the U.S. stock market. Associated Press market coverage recorded an S&P 500 decline of 3.5% during Thursday’s session. The Dow Jones Industrial Average fell 2.7%, while the Nasdaq Composite lost 4.7%.
TradingView provides S&P 500 charts and market breadth data. A capitalization-weighted index can fall sharply when its largest components decline together. Consequently, technology selling affected the wider benchmark.
The U.S. midterm elections had initially supported a recovery on Wednesday. Associated Press election coverage confirmed Democrats secured majorities in the House and Senate. The subsequent Wall Street selloff reversed that response, without proving the election triggered Thursday’s decline.
Tech Stocks Deepen the S&P 500 Crash
Artificial intelligence-related shares accounted for a substantial part of the market pressure. Associated Press figures showed Nvidia stock falling 7.5%, while Advanced Micro Devices dropped 14.6%. CoreWeave declined 12.1% as investors reassessed borrowing costs and data-center investment plans.
Higher financing costs can undermine the economics of capital-intensive infrastructure projects. Investors also considered possible restrictions on data-center development under the incoming congressional balance. Neither concern established that Democrats had enacted new restrictions on artificial intelligence activity.
The Nasdaq 100 and broader technology sector faced pressure as chip-related losses spread. However, a sharp decline in one trading session does not automatically place an index in a bear market. That classification compares prices against a prior peak.
Political uncertainty complicated the outlook. Democratic congressional majorities could introduce tighter oversight or block elements of the administration’s agenda. Investors still lacked a definitive policy announcement linking the election outcome to the immediate market losses.
Bitcoin Price Retreats as Risk Assets Fall
CoinMarketCap’s Bitcoin market data showed the cryptocurrency near $76,077 during Thursday’s selloff. Its displayed 24-hour range stretched from approximately $75,581 to $80,875. The move illustrated how quickly the previous session’s rebound had reversed.
The BTC price decline followed weakness across technology shares, but correlation did not establish direct causation. Crypto assets trade continuously, while U.S. equities follow scheduled exchange sessions. That distinction complicates comparisons of intraday movements.
CoinMarketCap also recorded approximately $45.22 billion in Bitcoin trading volume over 24 hours. The figure measured transactions, not investor withdrawals. Volume alone therefore could not establish how much capital permanently exited cryptocurrency investments.
The Bitcoin price decline increased attention on previous trading levels around $75,600 and the $80,000 recovery threshold. Neither level guaranteed support or resistance. A sustained move through either area would provide clearer information about near-term direction.
Bitcoin ETF Flows Offer a Different Picture
Farside Investors’ daily Bitcoin ETF figures showed $74.6 million in net inflows on Nov. 4. Fidelity’s FBTC attracted $236.7 million, while BlackRock’s IBIT recorded $201.2 million in withdrawals. Other funds contributed smaller positive flows to the overall result.
The preceding three sessions recorded net outflows, limiting the strength of Wednesday’s recovery signal. Importantly, the reported ETF subscriptions preceded Thursday’s equity selloff. No finalized Nov. 5 figure was available in the cited daily table at the time of review.
An ETF flow measures fund creations and redemptions, not an instantaneous change in Bitcoin’s market price. Positive daily subscriptions can therefore coexist with a later decline in underlying assets. The next completed session would clarify whether institutional fund demand held during Thursday’s downturn.
The next scheduled U.S. catalyst was the October employment report on Nov. 6. The Bureau of Labor Statistics scheduled its release for 8:30 a.m. Eastern Time. Traders could compare that report with updated equity prices, Bitcoin trading, and finalized ETF flows.
This article is for informational purposes only and does not constitute financial advice. Stock and cryptocurrency markets are volatile, and market projections carry financial risks.
