Crypto has reversed yesterday’s recovery in a hurry.
Bitcoin has dropped to around $77,500, down roughly 3.5% over the past 24 hours. Ethereum is near $2,316 after losing almost 5%, XRP has fallen back to $1.27, and Solana is down around 4%.
The move is broad. Zcash, BNB and Hyperliquid are also falling, wiping out a large part of the gains seen during Wednesday’s post-election rebound.
The immediate catalyst appears to be surprisingly strong U.S. labor-market data.
What you'll learn 👉
U.S. Jobless Claims Just Hit a 57-Year Low
Initial unemployment claims fell to only 189,000 for the week ending October 31.
That was below market expectations around 195,000-197,000 and matched the lowest reading since 1969. The previous week was revised to 195,000.
Normally, low unemployment claims sound like good economic news.
For crypto, however, the reaction can be the opposite.
A labor market that remains this resilient gives the Federal Reserve less reason to move toward easier monetary policy. Inflation is still above target, and markets were already pricing a high probability of another rate increase in December.
BREAKING: Bitcoin falls below $77,000 and ETH falls below $2,300 as $370 million worth of levered positions are liquidated in 60 minutes. https://t.co/vYsLLjWKcL
— The Kobeissi Letter (@KobeissiLetter) November 5, 2026
That means stronger employment data can translate into expectations for tighter financial conditions for longer.
Bitcoin, Ethereum and other speculative assets tend to struggle in that environment.
This Is Not Just a Crypto Selloff
The reaction is also showing up outside crypto.
Technology stocks are under heavy pressure today. The Nasdaq has fallen around 2.4%, while the S&P 500 is down roughly 1.2%. Nvidia dropped more than 4%, AMD lost over 10%, and several AI-related names were hit even harder.
That is important.
The simultaneous weakness in Bitcoin, altcoins and high-growth technology stocks makes the current move look much more like a macro risk-off event than a new crypto-specific crisis.
The jobs data is one piece of it.
Investors are also reassessing expensive AI and semiconductor valuations after a strong run, while elevated interest rates continue to make speculative assets less attractive.
Crypto is being caught in the same trade.
Yesterday’s Crypto Rally Was More Fragile Than It Looked
There is another reason prices are falling so quickly.
Yesterday’s rally above $80,000 looked powerful on the surface, but underlying market data was less convincing.
Bitcoin futures open interest barely increased during the recovery, U.S. spot Bitcoin ETFs attracted only around $74 million, and the Coinbase Premium remained negative.
CoinDesk also reported around $450 million in crypto short liquidations over the previous 24 hours, including $300 million in Bitcoin shorts.
In other words, a significant part of the rebound came from traders closing bearish positions rather than a huge wave of fresh spot buying.
That distinction matters now.
Once the macro environment turned negative again, there was not enough underlying demand to keep BTC comfortably above $80,000.
What Happens Next for Bitcoin and Crypto?
Bitcoin has now lost the $80,000 level that looked encouraging only hours ago.
The immediate area to watch is roughly $76,000-$77,000.
Bitcoin recently formed a local low near $75,700, so another test of that region would tell us a lot about the strength of the recovery attempt.
If $75,700 breaks, the rebound from earlier this week begins looking much more like a temporary relief rally.
A recovery back through $79,000 and then $80,000 would be the first sign that buyers are absorbing today’s selling.
Friday’s U.S. jobs report now becomes even more important.
Weekly claims already told markets that layoffs remain extremely low. Another strong employment report could keep pressure on rate-sensitive assets.
For now, the crypto crash looks less like something suddenly breaking inside the industry and more like a fragile rebound colliding with another reminder that the U.S. economy may still be too strong for the easier monetary policy risk markets want.
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