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# Tech Selloff Adds to Pressure on Bitcoin
- URL: https://axeladlerjr.com/tech-selloff-adds-to-pressure-on-bitcoin/
- Published: 2026-11-06T07:29:31.000Z
- Updated: 2026-11-06T07:44:59.000Z
- Author: Axel Adler Jr.
- Tags: Market cycles, Adler AM: Bitcoin Morning Brief, #am-12793dc1-caae-4369-a12b-69c0e038fdf5

Tech stocks suffered their biggest one-day decline since the COVID pandemic. Investors began reassessing their AI expectations as the Democrats’ victory fueled concerns that new restrictions could slow data center construction.

## TL;DR

The selloff in AI stocks was accompanied by a sharp rise in volatility. We examine the reasons behind the decline and how investors reducing risk in the stock market affects BTC.

6.36%

Nasdaq session decline

12%

Semiconductor index decline

nearly 70%

One-day VIX increase

$75K

Bitcoin level under pressure

### Nasdaq 100

![Nasdaq-100 fell 6.36% in the session to 26,630 points amid a selloff in AI-related stocks.](https://axeladlerjr.com/content/images/2026/11/chart-1-7.png)

Nasdaq-100 fell 6.36% in the session to 26,630 points amid a selloff in AI-related stocks.

The Nasdaq-100 fell 6.36% during the session to 26,630 points. The S&P 500 technology sector lost 7.3%, while the Philadelphia Semiconductor Index dropped 12%. Selling hit companies whose revenue depends on the expansion of AI infrastructure particularly hard.

Democrats who won the gubernatorial elections in Texas, Ohio, and Georgia promised moratoriums on new data center construction. Such restrictions could delay purchases of chips and equipment and reduce suppliers’ expected revenue. Investors are already pricing this risk into stocks, although the election results alone do not mean projects have been halted.

### VIX

![VIX rose nearly 70% in a day, from 16.6 to 28.2 points, signaling expectations of larger stock-price swings.](https://axeladlerjr.com/content/images/2026/11/chart-2-7.png)

VIX rose nearly 70% in a day, from 16.6 to 28.2 points, signaling expectations of larger stock-price swings.

The VIX rose nearly 70% in a day, from 16.6 to 28.2 points. This indicator is calculated from S&P 500 options prices. Its sharp rise suggests that investors expect larger swings in stock prices over the next 30 days.

Rising volatility can intensify selling: some funds reduce their positions to keep portfolio risk within set limits, and expectations of such selling put additional pressure on the market.

### FAQ

**Does a rising VIX mean the selloff is nearly over?**  
No. The index measures the expected size of price swings but does not identify when the market will turn.

**Why do data center restrictions affect Bitcoin?**  
When reducing risk across their portfolios, investors may sell risk assets, including BTC. This can happen without any deterioration in the Bitcoin network’s own metrics.

### Conclusions

Bitcoin came under heavy pressure, falling to $75K after recovering to $80K. A stabilizing Nasdaq and a declining VIX would indicate easing external pressure on BTC. As long as the stock selloff continues, the risk of further position reductions in the crypto market remains.

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