Bitcoin dropped to its lowest level since early-September on Tuesday as traders avoided crypto ahead of the U.S. midterm elections. The Binance theft and spot ETF outflows added pressure, while a rout in technology stocks soured risk appetite.
Bitcoin fell 2% to $76,565.9 on Tuesday, extending recent declines as uncertainty over the U.S. regulatory outlook after the midterm elections kept traders away from cryptocurrencies. The move put the world's largest crypto at its lowest level since early-September.
The token was also nursing an over 6% loss in October. A historic trend of crypto price strength in October failed to materialize for a second straight year.
Binance theft and ETF outflows weigh on sentiment
Markets were still reeling from an over $6 billion theft of Binance's crypto holdings late last week. Binance resumed withdrawals at a staggered pace this week and said it will cover all customer losses.
Institutional investors reacted to the hack, and Bitcoin faced a sharp outflow from spot exchange-traded funds on Monday. Data from SoSoValue, reported by crypto.news, showed $398.6 million in net outflows on November 2. That followed $643.3 million on October 30, the biggest single-day outflow since June.
A broader rout in technology stocks also pressured crypto, as anxiety grew over stretched spending on artificial intelligence.
Midterms could shape crypto regulation
Physical voting was set to begin later on Tuesday. The elections are largely expected to set the regulatory agenda for the remainder of President Donald Trump's term.
A Democrat sweep of Congress, where Republicans hold a dual majority, would effectively end the prospect of more pro-crypto legislation over the next two years, according to Investing.com. A key act, Clarity, largely failed to clear Congress earlier this year.
Altcoins follow Bitcoin lower
Losses in Bitcoin spilled over into the broader market. Ether fell 1.4% to $2,253, Solana fell 2.7% and BNB fell 1.7%.
Crypto.news puts immediate Bitcoin support near $76,500, followed by $75,000, with resistance near $78,000.
Sources: Investing.com, crypto.news
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