Nasdaq Crash: Chip Stocks Fall Up to 11% and Drag Bitcoin Down With Them

The Nasdaq slid into a correction on Thursday, more than 10% below last month's record, as investors dumped chip and AI stocks, CNBC reports. At 17:52 UTC the index stood 4.6% lower on the day after falling as much as 5%, according to Yahoo Finance. Bitcoin went with it and lost more than $5,000 from its high.

What began as a tech sell-off became a crypto story within an hour. Our full piece on the Bitcoin crash covers the price levels, hedging and what you can do now. This one looks at Wall Street.

Why Is the Nasdaq Crashing? AI Fears After the Midterms

Investors fear that the Democratic sweep of both chambers, along with wins in key governors' races, could slow the AI and data center buildout, CNBC writes. UBS analysts estimated that around 30% of US data center capacity additions expected in 2028 could be at risk from construction pauses, Bitcoin Magazine reports citing Reuters. Selling began in Asia, where the Kospi closed down more than 5%.

Orion's chief investment officer Tim Holland told CNBC that investors are "stepping away" until they understand what the midterms mean for the AI capex cycle.

Why Are Chip Stocks Down? The Biggest Losers

• Chips: The PHLX Semiconductor index fell as much as 11%. Nvidia and Broadcom lost about 6%, Qualcomm 11% after a weak outlook.
• AI infrastructure: CoreWeave lost 9%, Nebius 13% and Iren 14%, CNBC reports.
• Fear gauge: The VIX jumped more than 65% to as much as 27.45, the biggest one-day rise in over two years, Yahoo Finance notes.

Why Bitcoin Falls With the Nasdaq

Bitcoin has traded alongside the AI-heavy tech complex for most of the year, and miners are part of it, because many have sold coins to fund AI data centers. So the same political risk weighs on both, Bitcoin Magazine writes. When big investors cut risk, they sell what has swung the most. Leverage did the rest, with about $370 million in crypto positions liquidated in roughly an hour.

Gold moved the other way and stood 1.5% higher, which fits a day when money looked for shelter.

What Comes Next for the Nasdaq and Bitcoin

Three dates matter: the US jobs report on Friday, inflation data on November 10 and the Fed decision on December 9. Jobless claims of 189,000 were already below the 196,000 expected, which leaves the Fed little reason to ease. Our assessment: as long as the AI debate stays open, crypto remains tied to tech. This is no forecast. A running timeline of every sell-off is on our page why crypto is down.

How to Act in This Market: Hedge First, Then Buy

If you hold through a sell-off like this, remove leverage first. Hedging routes and their costs are in our Bitcoin crash guide. Our comparisons of regulated exchanges and crypto brokers help you choose a platform. Here are three common ones; the links are partner links.

Provider	Strength	Fits if you
Bitpanda	Savings plans, European provider from Vienna	want to buy in small, regular amounts
Coinbase	Simple app, listed on Nasdaq	are starting out and want a clear interface
OKX	Spot and derivatives on one platform	want to trade actively or hedge a position

As of November 5, 2026. Stock figures are intraday. This article is not investment advice.