- The outflows deepened. US-listed bitcoin funds posted $1.04 billion of net outflows over Friday and Monday, according to data compiled by Bloomberg. BlackRock’s iShares Bitcoin Trust accounted for $405 million of Monday’s withdrawals.
- The Binance hack still hangs over the market. Binance said Tuesday that the hackers behind the $6.3 billion heist used social engineering techniques including fake job interviews, as well as malicious software, in a “sophisticated, multi-stage campaign.” The exchange has attributed the Oct. 29 hack to North Korea, which has denied involvement, and says it has replenished about 95% of affected assets.
- Bitcoin is testing support. The token traded just above $77,000 on Tuesday, hovering around its 100-day moving average after slipping below it earlier. Deribit’s 24-hour put-call ratio of about 1.2 shows stronger demand for downside protection, and CoinMarketCap’s Alice Liu said bitcoin futures saw $2.7 billion of net aggressive selling over seven sessions while spot saw net buying.
- The midterms add policy risk. The GENIUS Act created a federal stablecoin framework last year, but the industry’s next priority, the Clarity Act, failed to advance in the Senate in September. A Democratic sweep could shift attention toward tougher oversight; Hilbert Group CIO Russell Thompson said, “I do not think a significant Democrat win is priced into the price of Bitcoin.”
What Happened?
Investors pulled more than $1 billion from US bitcoin ETFs over two trading sessions as the record Binance hack and uncertainty around the US midterm elections weighed on sentiment. Binance temporarily suspended withdrawals after the exploit and has since resumed them in phases. Bitcoin has struggled to mount a sustained rebound after last week’s selloff, leaving traders focused on whether support holds as US voters head to the polls.
Why It Matters?
ETF flows are the clearest gauge of US institutional demand for bitcoin, so a second straight wave of outflows shows the hack and the election are weighing on mainstream investors, not just crypto-native traders. FxPro analyst Alex Kuptsikevich said the market “looks bleak enough to test the most important support levels of recent months.” Still, Liu’s point that leverage is leaving while spot coins stay suggests forced sellers, not long-term holders, are driving much of the selling: “The leverage is leaving through the front door; the coins are staying.”
What’s Next?
The election result is the near-term catalyst. Re7 Research said the vote could prove a clearing event that removes a key uncertainty and allows lighter positioning to turn into renewed risk appetite, while a Democratic sweep could narrow the path for crypto-friendly laws. Bitget Wallet’s Lacie Zhang said a systemic crisis is not the base case but cited withdrawal restrictions, weaker market depth and stablecoin depegging as warning signs to watch.
Affected Tickers and Coins: IBIT, BTC, BNB
Source: Bloomberg
