Bitcoin rebounds after sell-off, and the White House gets crypto broker rules - Yahoo Finance

Bitcoin's post-election rebound was completely erased as a massive global market sell-off triggered over $1 billion in crypto liquidations. The sell-off affected 211,000 traders, with $1.12 billion of the total coming from long positions. US spot Bitcoin ETFs recorded $430.2 million in net outflows on Thursday alone, with Fidelity accounting for about $200 million of that and BlackRock's IBIT about $100 million.

Market sell-off triggers

The market downturn was triggered by a tweet from a Democratic Congressperson calling for a pause on advanced AI development and a ban on artificial super intelligence, which gained 18.5 million views. While the tweet itself was largely symbolic, it spooked investors already concerned about AI investments. The Nasdaq fell 5.5%, its worst day since April 2025, while the S&P dropped 4.4% and the Dow declined 1,833 points or 3.4%.

The Philadelphia semiconductor index plunged 12%, with Nvidia down 9% and Micron and Marvel each down approximately 7%. Investors sold AI-related stocks amid concerns about slower data center construction and returns on infrastructure spending. The market was already at historic highs of leverage, which was subsequently liquidated.

Bitcoin's relative strength

Despite the broader market turmoil, Bitcoin showed relative strength, trading at prices similar to its levels before the election in the mid-$70,000 range. It remained above or right on the 50-week moving average, which is viewed as a bull-bear line for the market. This performance contrasted sharply with other markets approaching bear territory.

Trump Media Bitcoin moves

Blockchain data showed Trump Media moved 4,259 Bitcoin (worth approximately $342 million) to crypto.com. These transfers came from wallets labeled as collateral for 2028 convertible notes and occurred in two batches. Trump Media has previously described similar transfers as trading or custody management rather than sales.

Notably, American Bitcoin, the Trump-affiliated miner, actually added Bitcoin to its holdings during this period, suggesting different strategies within Trump-related entities. The exact nature of Trump Media's Bitcoin holdings remains unclear as moving to an exchange doesn't necessarily indicate a sale.

White House reviews crypto rules

The White House regulatory office logged the SEC's draft rules for crypto broker dealers on November 3rd, though the text is not yet public. The package addresses financial responsibility, record keeping, reporting requirements, and how broker dealers would be able to custody crypto assets on behalf of customers.

This development shows that regulators continue to push forward with crypto regulations despite legislative clarity issues. The SEC, CFTC, and other agencies are actively creating rules for the crypto industry, which will likely face further scrutiny before implementation.