Bitcoin has spent the past two weeks drifting lower. It now trades around $75,000 after heavy outflows from exchange-traded funds, the largest hack in crypto history and a Federal Reserve that sounds more hawkish by the day.
A bruising few weeks
Bitcoin fell 7.3 percent in October to close near $77,500. Late on 29 October, attackers drained roughly $6.3 billion from Binance, the largest theft in crypto history. The US Federal Bureau of Investigation has identified North Korean hackers as responsible, according to The Block. The price slid to a monthly low near $76,200 the next day.
Early November brought little relief. Bitcoin dipped below $76,000 last week as technology stocks sold off and investors digested the US midterm election results. Market reports put it near $74,800 on Monday, down about 1.4 percent on the day. The total value of all digital assets fell from about $2.6 trillion to $2.5 trillion over the week.
Funds see steady withdrawals
US spot Bitcoin ETFs have been the clearest sign of shifting sentiment. They recorded $643 million in net outflows on 30 October, the largest single day in four months. A further $399 million followed on 2 November and $116 million on 3 November, a three-day total of roughly $1.16 billion.
Last week as a whole, the funds shed $1.28 billion, their biggest weekly withdrawal since late June, according to Farside Investors data. BlackRock’s iShares Bitcoin Trust accounted for $1.21 billion of that. The funds’ total assets are about $99 billion, so the withdrawals are significant but not catastrophic. They have, however, erased most of the year’s net inflows.
Some analysts urge perspective. ViaBTC’s Jeff Ko described the first big outflow as a sentiment shock, noting that fund holders have no direct exposure to Binance because the coins sit with regulated custodians.
The Fed factor
Macro conditions are adding to the pressure. The Fed held rates on 28 October, but officials have signalled more increases. On Tuesday, October inflation came in hotter than forecast, with core prices up 0.3 percent for a third straight month. Governor Christopher Waller has said a half-point hike in December should be considered if inflation stays at that level.
Markets now treat a December increase as nearly certain. Higher interest rates make non-yielding assets such as Bitcoin less attractive, and they raise borrowing costs for leveraged crypto investors. The same pressure was visible in gold, which had slipped below $4,000 at points last month.
Regulation is another source of unease. Democrats won control of Congress in the midterms, and some crypto investors worry that a new majority could tighten rules for digital assets.
What analysts are watching
Several market analysts had named the $76,000–$78,000 band as the level Bitcoin needed to hold in November. The price has now slipped beneath it, which puts attention on a few developments:
- Whether Binance completes customer withdrawals and demonstrates that its reserves are intact.
- Whether ETF flows stabilise or keep draining.
- The Fed’s 8–9 December meeting and the data that comes before it.
For now, the market is balancing a weak flow picture, a security scare and a rising-rate backdrop. A bounce is possible, as heavily pessimistic sentiment can reverse quickly. But nothing yet shows that the selling has run its course.
This article is for information only and is not investment advice. Cryptocurrencies are highly volatile.
