Bitcoin erases post-election gains as Wall Street selloff triggers over $1 billion in crypto liquidations - The Block

Bitcoin has given back the gains it accumulated following the U.S. election, according to The Block, as a broader selloff on Wall Street spilled into digital assets and triggered more than $1 billion in crypto liquidations. The move underscores how closely bitcoin has traded in step with risk assets such as equities, rather than behaving as an independent store of value during periods of market stress.

Liquidations of that scale typically reflect leveraged positions being forcibly closed as prices fall, which can amplify short-term volatility. When traders borrow to magnify exposure, a sharp move can set off cascading margin calls, deepening the pullback beyond what spot selling alone might produce.

For observers, the key question is whether this is a temporary deleveraging event or the start of a longer risk-off phase. Watch whether equity markets stabilize, whether liquidation volumes cool, and whether bitcoin can reclaim the levels lost since the election. Until then, the episode is a reminder that crypto remains sensitive to broader liquidity conditions and to the leverage embedded in its derivatives markets.