Bitcoin Crashes Below $77K as Chip Rout Deepens Ahead of U.S. Midterms

Bitcoin fell below $77,000 on Monday as a sharp decline in chip stocks deepened, pushing the Nasdaq 100 into correction territory and weighing on risk assets globally. The selloff extended to other cryptocurrencies, with Zcash (ZEC) dropping nearly 10% and Binance Coin (BNB) slipping under $700, while Asian stock markets followed Wall Street lower.

The move comes amid a broader tech rout that has seen semiconductor shares tumble, eroding investor confidence ahead of the U.S. midterm elections. The Nasdaq 100's slide into correction—defined as a drop of more than 10% from its recent high—has exacerbated concerns about economic uncertainty and potential policy shifts. Cryptocurrencies, often correlated with tech stocks, have been particularly vulnerable to the risk-off sentiment.

Market participants are closely watching the midterm elections for signals on future regulatory and fiscal policies that could impact digital assets. The downturn highlights the growing interconnectedness between traditional equities and crypto markets, with analysts warning of further volatility if the chip sector rout continues. Global reactions remain cautious, with investors awaiting clarity on the political landscape and its implications for economic stability.