Stock Market Sell-off Continues, Crypto Market Faces Liquidation Risks

PANews, November 6 - Tech stocks experienced their largest single-day drop since the COVID-19 pandemic, with the Nasdaq 100 index falling 6.36% to 26,630 points. The S&P 500 technology sector dropped 7.3%, and the Philadelphia Semiconductor Index fell 12%. The Democratic Party won gubernatorial elections in Texas, Ohio, and Georgia, promising to pause the construction of new data centers, raising investor concerns about a slowdown in AI infrastructure expansion. The VIX index rose from 16.6 to 28.2, a nearly 70% increase in a single day, indicating that investors expect greater volatility in U.S. stocks in the future. Analyst Axel Adler Jr. stated that the sharp fluctuations in U.S. stocks could trigger funds to reduce their positions to control risks, thereby exacerbating stock sell-offs and putting pressure on risk assets like Bitcoin. After rebounding to $80,000, Bitcoin faced pressure and fell back to $75,000. He noted that a stabilization of the Nasdaq and a decline in the VIX would indicate a relief of external pressures; as long as the stock market sell-off continues, the risk of further liquidation in the crypto market remains.

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