Bitcoin Falls Nearly 5% as AI Stocks Slump, $428M in Longs Liquidated

The notable signal is correlation, not the drawdown itself: crypto selling arrived alongside an AI equity slump, suggesting bitcoin is still trading as a risk asset rather than an independent one. The $428 million long flush also shows how much of the prior rally rested on short covering and leverage, which unwinds quickly when sentiment turns. The policy angle from Democratic midterm wins adds a second, slower-moving variable. Whether bitcoin keeps tracking AI-linked equities, and whether that political shift translates into concrete policy signals, are the open questions worth watching.