Bitcoin closed the week at $75,618, a seven‑week trough that aligned with its 50‑week moving average, as the US midterm elections and a rapid AI‑related market correction pulled risk assets lower, according to Bitcoin.com’s Week in Review editorial.

BTC / USD
Source: CoinGecko. Prices are indicative.

AI‑driven market shock spreads to equities and crypto

The Nasdaq Composite plunged 5.52% to 24,315, marking its steepest one‑day drop in 19 months, while the Nasdaq‑100 fell 6.4%, the worst session since the March 2020 Covid panic. The S&P 500 and Dow also posted double‑digit declines, dragging Bitcoin from above $80,800 to just under $76,000 by the close, a 5.2% daily loss.

Hedge funds and tech positions unwind

Goldman Sachs data showed hedge funds net‑sold roughly $20 billion of technology equities over two weeks, erasing the AI‑net‑long bias that had built up since early 2025. The sell‑off extended to Asian markets, with South Korea’s KOSPI falling more than 8% on Friday and triggering a 20‑minute trading halt.

Regulatory developments continue amid market turbulence

The US Securities and Exchange Commission released updated crypto FAQs clarifying the treatment of token buybacks, governance structures and network upgrades under securities law. Meanwhile, the Commodity Futures Trading Commission announced that equity perpetual futures may begin trading on registered exchanges, prompting a lawsuit from a consortium of incumbents including Citadel and Cboe, which argue the move infringes on SEC jurisdiction.

What to watch next

Analysts will monitor whether the midterm‑driven political uncertainty translates into longer‑term policy shifts affecting data‑center regulation and AI development, and how further regulatory guidance from the SEC and CFTC may shape crypto market structure. Additionally, the resilience of Bitcoin above the $80,000 level in the coming days will be a key barometer for risk appetite across both crypto and broader equity markets.