The crypto market has suffered another round of losses on November 9, with Bitcoin falling below $75,000 and Ethereum trading near $2,100 as concerns over US crypto regulation, the Binance hack and institutional withdrawals continue to weigh on prices.
Summary
- Bitcoin traded at $74,584, down 1.4% over the past 24 hours, while Ethereum fell 4.4% to $2,137 and recorded a weekly loss of 7.4%.
- Democratic victories in the US midterm elections raised concerns over stricter cryptocurrency regulations and the future of industry backed legislation.
- The reported $6.34 billion Binance hack continued to weigh on market sentiment, with customers withdrawing billions of dollars after the exchange resumed services.
- US spot Bitcoin and Ethereum ETFs recorded combined net outflows of $530.1 million on November 5 as institutional demand weakened.
- Losses in US technology stocks and stronger employment data added pressure on cryptocurrencies as investors reassessed expectations for Federal Reserve interest rates.
Bitcoin and Ethereum fell to their lowest levels since August during late Sunday trading, as investors reacted to the outcome of the US midterm elections and recent security concerns.
Bitcoin was trading at $74,584 at the time of writing, down 1.4% over the past 24 hours and 4.9% over the past week. Ethereum suffered heavier losses, falling 4.4% to $2,137, while its weekly decline reached 7.4%.
Trading activity remained substantial despite the losses, with Bitcoin recording nearly $21 billion in daily volume and Ethereum accounting for approximately $10.5 billion.
US midterm election results raise concerns over crypto regulation
One of the main reasons behind the latest crypto market decline is the Democratic Party’s victory in both chambers of Congress during last week’s US midterm elections.
The result has raised concerns among investors that lawmakers could pursue stricter cryptocurrency regulations and slow legislation that the industry has been pushing to establish clearer rules for digital assets.
The cryptocurrency industry spent more than $300 million supporting crypto-friendly candidates from both major parties across the current and previous election cycles.
President Donald Trump’s administration has pursued a more accommodating approach toward cryptocurrencies, including lighter enforcement, the creation of a strategic Bitcoin reserve and expanded access to crypto-related financial products.
The latest election results have complicated that political environment, particularly as Democrats discuss changes to cryptocurrency market structure legislation and stronger investor protections.
As previously reported by crypto.news, Democratic lawmakers have discussed expanding the Securities and Exchange Commission’s oversight as part of their approach to regulating the industry.
Binance hack continues to pressure crypto market sentiment
The market has struggled to recover from the October 29 security breach at Binance, which resulted in approximately $6.34 billion worth of cryptocurrency being stolen from the exchange.
The incident ranks among the largest financial thefts ever reported and has raised concerns about exchange security and the custody of digital assets.
Binance said it would cover customer losses and subsequently reopened withdrawals after temporarily suspending them following the breach.
Customers withdrew a net $4.72 billion after services resumed, equivalent to approximately 2.8% of the assets held on the platform.
The FBI attributed the attack to North Korean-linked hackers, while Binance said it was working with industry partners to trace and freeze stolen assets.
Blockchain analytics firm Santiment subsequently reported heavy Bitcoin withdrawals from Binance-associated wallets, with approximately 28,316 BTC leaving those addresses through November 5.
The firm found that Bitcoin’s social sentiment had deteriorated considerably following the breach, with only 0.37 positive comments for every negative comment.
Bitcoin and Ethereum ETF outflows add to selling pressure
Institutional demand has weakened during the recent market decline, with US-listed spot Bitcoin and Ethereum exchange-traded funds recording substantial withdrawals.
On November 5, the two categories registered combined net outflows of $530.1 million, according to fund flow data.
Bitcoin ETFs accounted for $430.2 million of those withdrawals, while Ethereum funds lost another $99.9 million.
Andreja Cobeljic, head of derivatives trading at AMINA Bank, identified ETF flows and corporate Bitcoin purchases as important indicators of institutional demand.
The weakness has been particularly noticeable in Ethereum, which has continued to underperform Bitcoin during the latest sell-off.
Ethereum’s decline on November 6 triggered approximately $210 million in liquidations, including $179 million from leveraged long positions, as prices approached $2,200.
Ethereum has since dropped below that price level, while Bitcoin has remained closer to its recent trading range.
US stock market losses and Fed expectations weigh on cryptocurrencies
The cryptocurrency decline has coincided with heavy selling in US technology stocks, particularly companies associated with artificial intelligence.
Investors have become increasingly concerned about elevated AI valuations and the returns companies can generate from their substantial infrastructure spending.
The latest US employment figures have complicated the outlook for financial markets.
Stronger-than-expected employment data have raised expectations of another Federal Reserve interest rate hike in December, with market pricing indicating a probability approaching 80%.
The US dollar strengthened following the report, while investors turned their attention to upcoming inflation figures for further indications of the central bank’s next decision.
Asian equities and US stock futures recovered some ground on Monday, although Bitcoin and Ethereum remained under pressure following their weekend declines.
