Bitcoin Just Wiped Out The Bulls

Bitcoin’s post-election squeeze reversed sharply as a broad tech and AI selloff hit risk assets, with Scott Melker arguing the move was mostly technical and sentiment-driven rather than a real change in fundamentals. He said the earlier rally was just a short squeeze, and that Bitcoin’s hold of the weekly 50-day moving average still shows relative strength even after the reversal.

The broader market backdrop was the real driver: the Nasdaq and semiconductors were hit hard, the VIX spiked, and leveraged ETFs amplified the move after a record October inflow. Melker framed the AI panic as an overreaction to social-media chatter about AI regulation, saying a U.S. ban on AI is effectively impossible and would concede the race to China.

He also reviewed crypto-specific developments, including roughly $430 million of spot Bitcoin ETF outflows, the CFTC fight over stock perpetual futures, regulators quizzing banks after the Binance hack, and Moscow Exchange’s planned Bitcoin listing on December 1. His read was cautious but not bearish, with Bitcoin still looking stronger than equities unless it loses the weekly trend support.