Nasdaq drops 5% as chip stocks crash 11%; bitcoin falls below $76,000 with $1B liquidated
Weak chipmaker reports and Democrats' midterm landslide erased the post-election rally on Nov. 5, 2026. Bitcoin did not hedge the sell-off: it fell with tech, while gold and Treasurys caught the safe-haven bid.
TL;DR
- The Nasdaq Composite fell 5% and the PHLX Semiconductor index 11% around midday New York time on Nov. 5, 2026; the S&P 500 lost 3.3% and the Dow more than 1,200 points, Yahoo Finance reported.
- NBC News said the sell-off was triggered by mixed results from Qualcomm and Arm, which both slid 12%; Nvidia fell 7%, its largest one-day drop since April 2025.
- Bitcoin fell below $76,000 and more than $1 billion in crypto derivatives positions were liquidated over 24 hours, CoinDesk reported, citing CoinGlass.
- Crypto stocks and bitcoin miners turned AI data center operators fell harder, with CleanSpark, TeraWulf, IREN and Cipher Mining down between 13.3% and 14.4% in early trading, CoinDesk reported.
The post-election relief rally lasted one session. Around midday New York time on Nov. 5, 2026, the Nasdaq Composite was down 5% and the PHLX Semiconductor index had dived 11%, Yahoo Finance reported. The S&P 500 fell 3.3% and the Dow Jones Industrial Average lost more than 1,200 points (2.2%), erasing the gains from the rally on Nov. 4.
Chips first, politics second
According to NBC News, the sell-off was triggered by two lackluster reports from major chipmakers, Qualcomm and Arm Holdings, released on the evening of Nov. 4. Both slid 12%. Memory and storage names SanDisk, Western Digital, AMD, Seagate and Micron were among the S&P 500's biggest losers, plunging around 15%. Nvidia fell 7%, its largest one-day decline since April 2025, and was the biggest contributor to the Dow's drop.
The second driver is political. NBC News notes that numerous Democrats who won races for governor, attorney general, Senate and House seats on Nov. 3 have pledged to slow or halt the construction of AI data centers, with Texas, Ohio, Michigan and Georgia of particular concern as large data center markets. The Nasdaq 100 dropped as much as 6.2% at one point, and the S&P 500 was on track for its worst day since April 2025.
"I don't think this is an AI bubble bursting. I think it's an AI bubble losing some air very, very rapidly." – Ed Yardeni, Yardeni Research, to NBC News
Bitcoin trades like a chip stock
Crypto offered no shelter. Bitcoin fell below $76,000, down 5.2% over 24 hours, and ether dropped 7% to about $2,250, CoinDesk reported in its live coverage. More than $1 billion in crypto derivatives positions were liquidated over 24 hours, mostly long bets, according to CoinGlass data cited by CoinDesk. Bitcoin futures open interest fell below $26 billion, its lowest since mid-September, from $28 billion earlier in the session, per Coinalyze.
The safe-haven bid went elsewhere: gold rose 1.1% to $4,116 an ounce, and the 10-year Treasury yield slipped to 4.86%. The Cboe VIX surged over 50% to 28, its highest since late March. Privacy coins held up better, with Monero down about 3.5% and Zcash about 2%.
Crypto equities fell harder than the coins. In early trading Coinbase was down 7.8%, Strategy 8.3%, Robinhood and Circle about 10%. Bitcoin miners that have pivoted to AI data centers took double-digit hits: Cipher Mining -14.4%, IREN -14.3%, TeraWulf -13.8% and CleanSpark -13.3%, CoinDesk reported. Interest-rate traders also hedged: CME FedWatch put the chance of a Fed hike at its December meeting at 69%, down from 95% in late September.
What it means for crypto and Web3 teams – Analysis
Two things broke on Nov. 5, 2026. First, the "digital gold" narrative: when tech sold off, bitcoin fell with it while gold and Treasurys rallied. Second, the idea that AI infrastructure is politically neutral. The miners that rebuilt themselves as AI landlords now carry both chip-cycle risk and local permitting risk. For Web3 teams, the practical lesson is treasury and runway discipline: if your treasury is in volatile tokens and your story leans on AI, one session like this hits both at once. This is not investment advice.
FAQ
Why did the Nasdaq fall 5% on Nov. 5, 2026?
NBC News said the sell-off was triggered by mixed results from chipmakers Qualcomm and Arm, compounded by worries about AI returns and Democrats' midterm wins, as many winning candidates pledged to slow or halt AI data center construction.
How far did bitcoin fall?
CoinDesk reported bitcoin fell below $76,000, down 5.2% over 24 hours, with more than $1 billion in crypto derivatives positions liquidated, according to CoinGlass.
Did bitcoin act as a safe haven?
No. Bitcoin moved down with the Nasdaq, while gold rose 1.1% to $4,116 an ounce and the 10-year Treasury yield fell to 4.86%, according to CoinDesk.
Which crypto stocks were hit hardest?
Bitcoin miners turned AI data center operators, including Cipher Mining, IREN, TeraWulf and CleanSpark, fell between 13% and 14.4% in early trading, CoinDesk reported.
Sources
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