Bitcoin fell more than 2% to $73,708 on Sunday, its lowest level since August, as a post-midterm sell-off deepened across digital assets. Ether dropped about 5% to $2,223, also hitting an August low, according to Channel NewsAsia.
Price Action and Key Technical Levels
The decline accelerated after Bitcoin tumbled below $76,000 on Nov. 5, falling 5% as a post-election stock rally faded, Yahoo Finance reported. Global crypto market value dropped 5% that day, erasing $370 billion according to CoinMarketCap data. By Nov. 8, Bitcoin traded at $75,662, just $211 above Strategy’s average cost basis of $75,451 — a margin of 0.3%. The cryptocurrency had already dipped below that level intraday on Nov. 6, touching $74,722 before closing at $75,731.
On Nov. 2, Bitcoin stood at $77,750.64, roughly $32,770 below its price one year earlier, Fortune data showed. The bottom line: Bitcoin is testing a critical support level with minimal cushion.
Strategy’s $75,451 Average Cost as Critical Support
Strategy holds 849,327 BTC with an average cost of $75,451, representing a total investment of about $64.08 billion, per its Nov. 2 SEC filing. At $75,662, the holdings are valued at roughly $64.26 billion — just $180 million above cost. For every $1,000 Bitcoin falls below that line, Strategy would book roughly $849 million of paper losses under fair-value accounting.
The company has already recorded volatile quarterly swings: a $14.46 billion unrealized loss in Q1 2026, an $8.32 billion loss in Q2, then a $20.91 billion gain in Q3 that produced earnings per share of $44.75. MSTR shares closed at $128.93 on Nov. 6, down 15.2% year-to-date in 2026.
Investors will note the figure that matters: a quarterly close below $75,451 would flip the entire Bitcoin position to an unrealized loss. Strategy sold 1.18 million MSTR shares for $164 million and used $208.2 million to repurchase preferred stock in the latest quarter, aiming to support its 12% dividend obligation. The company’s dividend cushion stood at $4.79 billion as of Nov. 2, covering 3.4 years of dividend and interest payments.
Binance Hack Aftermath and Market Fragility
Markets were shaken by a $6 billion theft from Binance, the world’s largest crypto exchange, Channel NewsAsia reported. Yahoo Finance cited a $6.3 billion hack that rattled prices last week. K33 Research warned of thin trading activity and rising leverage setting up sharp price swings following the midterm results. The combination of thin liquidity and elevated leverage has amplified every move lower.
Regulatory Uncertainty Under Democratic Congress
Democratic control of Congress raises doubts about passage of the Clarity Act, the crypto industry’s long-stalled regulatory framework bill. Stifel’s chief Washington policy strategist Brian Gardner said the Clarity Act is unlikely to advance before year-end and called odds of a bipartisan compromise in the next Congress “pretty low.” Gardner expects Senator Elizabeth Warren, poised to chair the Senate Banking Committee, to pursue investigations targeting crypto firms alongside Wall Street banks and private equity firms.
Crypto-related stocks — Coinbase (COIN), Robinhood (HOOD), Strategy (MSTR), and Bullish (BLSH) — fell 9% or more on Nov. 5. Fundstrat’s head of digital assets Sean Farrell offered a counterview, arguing the decisive Democratic victory could strengthen Bitcoin’s appeal as a hedge against larger federal deficits.
Leverage and Thin Liquidity Amplifying Moves
With Bitcoin hovering just $200 above Strategy’s average cost, the market structure offers little buffer against forced liquidations. The post-midterm sell-off has erased the Wednesday rebound that had briefly lifted Bitcoin above $80,000.
Outlook for BTC and Crypto-Related Equities
Bitcoin’s next directional move hinges on whether it can hold above the $75,451 level that defines Strategy’s cost basis. A daily close below that mark would trigger paper losses across the corporate treasury strategy that has become a proxy for institutional Bitcoin exposure. The company has sold $432 million worth of Bitcoin in 2026 to fund preferred dividends and buybacks, tying coin sales directly to its capital structure. Its legacy software business contributed $125.43 million in Q3 revenue, with subscription services adding $68.59 million — not enough to cover a single quarter of preferred dividends, which totaled $419.56 million.
Sources
- Bitcoin and Ether fall to lows since August — Channel NewsAsia
- Bitcoin
- Current price of Bitcoin for Nov. 2, 2026 | Fortune
- Bitcoin tumbles below $76,000 as post-election stock rally fades
- Bitcoin Trades $200 Above Strategy's Average Cost of $75,451. What Happens to MSTR if BTC Closes Below It?
- Bitcoin Price Today | BTC Live Price, Chart & Market Cap
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