Bitcoin Defies Liquidation Wave as Nasdaq ETF Rebounds
Bitcoin traded near $80,428 on Thursday, 5 November 2026, up 4.00% on the day, even as the cryptocurrency market absorbed more than $1 billion in liquidations. The move higher came alongside a 1.08% gain in the Invesco QQQ Trust, an ETF that tracks the Nasdaq-100, which closed at $689.02. The divergent performance—crypto rallying while a major equity proxy also advanced—suggests that the recent correlation between tech stocks and digital assets may be loosening.
Earlier in the week, the Nasdaq had slipped into correction territory, defined as a decline of at least 10% from its recent peak. That equity weakness had initially dragged Bitcoin lower, with the largest cryptocurrency briefly trading near $76,000. But Thursday’s session reversed that trend, with Bitcoin reclaiming the $80,000 level and the QQQ ETF posting a modest gain. The recovery in both markets points to a broader risk-on sentiment returning to investors, albeit cautiously.
Strategy, Coinbase and Miners Sold Off Double Digits
Despite Bitcoin’s price recovery, crypto-related equities suffered sharp declines. Strategy (formerly MicroStrategy), Coinbase, and several bitcoin mining companies saw their shares fall by double-digit percentages. The sell-off in these stocks reflects lingering concerns about profitability and regulatory pressures, even as the underlying asset they are exposed to rallied. For instance, Coinbase’s stock drop came amid heightened scrutiny of crypto exchanges, while miners faced rising energy costs and thinning margins.
The divergence between Bitcoin’s spot price and the performance of crypto equities highlights a key dynamic: investors may be rotating out of leveraged or operational crypto plays and into the asset itself. This could be a sign of risk aversion within the sector, or simply a rebalancing after a period of outperformance by mining and exchange stocks. Either way, the double-digit losses in these names underscore the volatility that remains inherent in crypto-linked equities.
Why the $1 Billion Liquidation Event Did Not Crash Bitcoin
The $1 billion in liquidations across crypto derivatives markets is a significant figure, typically associated with sharp price declines. However, Bitcoin’s ability to hold above $80,000 suggests that the liquidations were absorbed by strong spot demand. In previous cycles, similar liquidation volumes have triggered cascading sell-offs, but this time, buyers stepped in aggressively. The funding rates for perpetual futures, while still positive, have cooled from their earlier highs, indicating that leverage has been reduced without a corresponding collapse in price.
This resilience may be attributed to institutional inflows into spot Bitcoin ETFs, which have continued to attract capital even during periods of market stress. Additionally, the broader macroeconomic environment, with expectations of moderating inflation and a potential pause in interest rate hikes, has provided a supportive backdrop for risk assets. The fact that Bitcoin could rally 4% on a day with over $1 billion in liquidations is a testament to the depth of the current market and the conviction of long-term holders.
What to Watch: Key Levels and Upcoming Data
Investors should keep an eye on the $80,000 support level for Bitcoin; a sustained break below it could signal a return to the recent lows near $76,000. On the upside, resistance is likely around $82,000, where previous selling pressure emerged. For the Nasdaq ETF, the $689 level is pivotal—holding above it would confirm the rebound, while a drop below $680 could reignite correction fears.
Looking ahead, the release of the U.S. Consumer Price Index (CPI) for October, scheduled for 13 November 2026, will be a critical catalyst for both crypto and equities. A lower-than-expected reading could further fuel the rally, while a hotter print might revive concerns about tighter monetary policy. Additionally, the upcoming decision from the Federal Reserve on interest rates in December will be closely watched. Any indication of a pause in rate hikes would likely be bullish for Bitcoin and tech stocks alike.
For now, the market’s ability to shrug off the liquidation event and the equity correction suggests underlying strength. However, the divergence in crypto equities warrants caution, as it may signal that not all participants are convinced by the rally. Traders should monitor the funding rates and open interest in Bitcoin futures for signs of overheating, and keep an eye on the performance of Strategy and Coinbase for clues about institutional sentiment.
Sources: rss_autopost