We Are Still Early: One Brutal Wall Street Session Erased More Than the Entire Crypto Market

Just a day after a post-election rally, the stock market experienced one of its most violent sessions in years.

The S&P 500 lost roughly $3 trillion in market capitalization, with Dow Jones Market Data putting the loss at around $2.9 trillion, the largest single-day wipeout on record for the index’s constituents.

The Nasdaq posted its steepest daily drop since the pandemic era, shedding another $2.5 trillion, while the Magnificent Seven companies lost just over $1 trillion.

Relentless selling

The scale of the selling was particularly relentless, with the S&P 500 and Nasdaq staging at least five intraday rebound attempts, including a single rally of 1.7%, but every one was sold.

The leading index failed to print a single positive one-hour candle during the entire session.

Technical factors

The Kobeissi Letter argued that the collapse appeared more technical than fundamental.

Concerns about AI profitability, capital expenditure, and potentially tighter regulation had already spooked investors, while record leverage amplified the move once sentiment turned.

US leveraged ETFs attracted roughly $15 billion in October, the largest rolling-month inflow in at least two years.

Crypto perspective

CoinGecko and CoinMarketCap put the entire crypto market cap at somewhere between $2.55 trillion and $2.65 trillion.

In other words, the $2.9-$3 trillion erased from S&P 500 companies in a single session exceeded the market value of every Bitcoin, Ethereum, XRP, BNB, stablecoin, altcoin, meme coin, and all other coins combined.

This comparison highlights that the digital asset market is still a fraction of its larger counterparts, despite major adoption news over the past few years.