Crypto and stock markets fell broadly from Nov. 5 to 6, 2026, in a correction driven by several factors, including a sell-off in the U.S. technology sector. Bitcoin briefly dropped to $75,360 and Ethereum fell to $2,216, with daily losses of 6.4% and 8.4%, respectively, as of writing.

Bitcoin and Ethereum remained within that trading range at the time of publication, according to daily BTC/USDT and ETH/USDT charts on TradingView. The correction affected the wider crypto market, with some of the 10 largest assets by market capitalization falling more than 9%, according to CryptoRank.

Daily liquidations of crypto futures contracts exceeded $1.2 billion, with long positions accounting for most of the total, data from CoinGlass showed. The scale of liquidations indicated the correction was sharp and suggested that forced position closures may have amplified the decline.

The crypto market’s fear and greed index fell nine points over 24 hours and moved deep into the “orange” zone, according to CoinStats.

The stock-market decline was also broad. NVIDIA shares fell 9.2%, Microsoft lost 3.58%, Meta dropped nearly 4%, Oracle declined 7% and Palantir fell nearly 10%. Technology stocks suffered the heaviest losses, according to a U.S. market heat map from CoinGlass.

Factors behind the correction

The Nov. 5-6 sell-off reflected growing concern about the outlook for the AI industry, political uncertainty in the United States and expectations surrounding the Federal Reserve’s next steps.

Economist Mohamed El-Erian said the global correction was driven primarily by the technology sector’s decline. Uncertainty over the industry’s outlook increased after the Democrats won the midterm elections, bringing potential restrictions on AI and related industries to the forefront.

U.S. Rep. Yassamin Ansari called for a pause in the development of advanced AI systems and tighter regulation of the industry. Billionaire Elon Musk responded to the Democrats’ victory by saying that building data centers in space was becoming a more attractive alternative.

Market participants differed over the correction’s longer-term implications. Galaxy Digital CEO Mike Novogratz acknowledged that the Democrats’ victory had pressured crypto- and AI-related companies but urged investors not to conflate political developments with the industries’ fundamental outlook.

“Finance is moving onto the blockchain, and demand for AI is growing rapidly,” Novogratz said, adding that he planned to increase his investment in Galaxy shares.

U.S. monetary policy remained another source of uncertainty. El-Erian had previously pointed to a high likelihood of another Federal Reserve interest-rate increase.

Source: Incrypted