Bitcoin Falls Below $77,000 as US Chip Stocks Slump Ahead of Midterm Elections

Bitcoin fell below $77,000 as a rout in US technology stocks and caution ahead of the midterm elections weighed on risk assets.

CoinDesk said on Nov. 3 that Bitcoin dropped about 2% in morning trading in Asia, slipping below $77,000. It gave back all of the previous day's rebound and fell beneath the roughly $77,600 level reached on Nov. 1.

Major altcoins also weakened across the board. Zcash (ZEC) tumbled about 10% to $1,140, while Hyperliquid (HYPE) fell 5% to $84 and Solana (SOL) dropped 3% to $92. Ether (ETH) traded just above $2,250, and BNB slipped below $700. Tron (TRX), by contrast, rose about 2%.

The decline in digital assets came as selling spread through US semiconductor shares. A US semiconductor-related index has fallen 12% over the past three trading sessions, while the Nasdaq 100 Index has dropped 10% from its recent high, entering correction territory. The S&P 500 fell 0.5%.

Asian equities were also pressured by the weakness in technology shares. South Korea's Kospi Index fell more than 3% intraday, while the MSCI Asia Pacific Index slipped about 1%. Chinese stocks also weakened despite authorities' support measures for the equity market.

A sharp drop in oil prices, driven by hopes for a peace agreement between the US and Iran, failed to restore appetite for risk assets. Relief from easing tensions in the Middle East appeared to be outweighed by market anxiety over the correction in technology stocks.

Investors are also watching the outcome of the US midterm elections later on Nov. 3. Vote counting is set to begin coming into view around the opening of Asian financial markets on Nov. 4, Korea time. Political uncertainty and volatility in technology shares are likely to be the main near-term drivers for digital assets, including Bitcoin.