Tech Stock Rout and VIX Spike Raise Bitcoin Selling Risk

A steep US technology-stock selloff and a nearly 70% jump in the VIX on Nov. 6 raised the risk of further selling across Bitcoin and other crypto assets.

The Nasdaq-100 dropped 6.36% to 26,630. The S&P 500 technology sector lost 7.3%, and the Philadelphia Semiconductor Index fell 12%, marking technology shares’ largest one-day decline since the COVID-19 pandemic.

The VIX climbed from 16.6 to 28.2, reflecting expectations for wider swings in US stocks. Concerns about slower artificial intelligence infrastructure growth intensified after Democratic winners in Texas, Ohio and Georgia gubernatorial races pledged to pause new data center construction.

Analyst Axel Adler Jr. said sharp market moves may lead funds to cut positions to manage risk, potentially compounding equity losses and weighing on Bitcoin and other risk assets.

Bitcoin had rebounded to $80,000 before retreating to $75,000. Adler said a steadier Nasdaq and a decline in the VIX would signal that pressure from traditional markets is easing.