Bitcoin fell sharply to just under $77,000, impacted by heavy sell-offs in U.S. tech stocks and heightened caution ahead of the midterm elections. Coupled with this decline were significant outflows from spot cryptocurrency funds. Bitcoin ETFs witnessed a net outflow of $398.6 million, while Ethereum ETFs reported a $139.7 million withdrawal.
Global Stock Market Pressures Intensify
According to CryptoAppsy data, Bitcoin is trading at $76,700, having entirely reversed its previous day’s recovery and slipping below the approximately $77,600 level observed on November 1. The sell-off extended to major altcoins, with Zcash (ZEC) dropping nearly 10% to $1,140, Hyperliquid (HYPE) losing 5% to $84, and Solana (SOL) declining 3% to $92. Ether (ETH) is trading just above $2,250, and BNB dipped below $700. Meanwhile, Tron (TRX) rose by approximately 2%.
U.S. semiconductor stocks have fallen 12% over the last three trading days. The Nasdaq 100 entered correction territory with a 10% drop from its recent peak, while the S&P 500 lost 0.5%. In Asia, South Korea’s Kospi index fell over 3% during the day, and the MSCI Asia Pacific Index declined nearly 1%. Despite efforts to bolster the market, Chinese stocks also depreciated.
“Despite the sharp decline in oil prices potentially spurred by a prospective peace agreement between the U.S. and Iran, risk appetite remains subdued. Investors are closely watching the upcoming U.S. midterm elections on November 3, with initial results expected around the opening of Asian markets on November 4, South Korea time.”
Sustained Withdrawals from Bitcoin and Ethereum ETFs
Data from Farside Investors indicates that a net $398.6 million was withdrawn from 12 U.S. spot Bitcoin ETFs on November 2, marking the second consecutive day of high net outflows. The BlackRock iShares Bitcoin Trust (IBIT) alone saw a withdrawal of $405.3 million, whereas Fidelity’s Wise Origin Bitcoin Fund (FBTC) recorded a net inflow of $6.7 million, with no significant net changes reported in other funds.
On the same day, U.S. spot Ethereum ETFs experienced a net outflow of $139.7 million, extending the series of net outflows to six trading days. Despite the sharp decline in oil prices, sell-offs in tech stocks continue to suppress risk appetite, with sustained outflows from spot ETFs contributing to an uncertain market environment. The forthcoming election results are poised to heavily influence the short-term trajectory of Bitcoin, particularly in light of the ongoing volatility in tech stocks.
