CryptoETHBitcoin and Ethereum Face Declines Amid Market Uncertainty

Bitcoin and Ethereum Face Declines Amid Market Uncertainty

Bitcoin and Ethereum encountered significant struggles, leading to increased fear, doubt, and uncertainty among major holders.

Bitcoin fell by 1.75% over the past 24 hours, trading at $68,500 at the time of writing. The cryptocurrency’s market capitalization is currently approximately $1.35 trillion, with a daily trading volume of $23 billion.

Additionally, the volume of whale transactions, defined as those involving at least $100,000 worth of BTC, has started to decline in tandem with the asset’s price drop. Whale transactions plummeted from $67.8 billion on October 29 to just $21.1 billion by November 2.

Ethereum, the leading altcoin, mirrored Bitcoin’s downturn, experiencing a 2.2% decline and trading at $2,450. Its market cap hovers near the $300 billion mark. Similarly, large Ethereum transactions dropped from $8.1 billion on October 29 to $2.5 billion the following day.

The sharp decrease in whale activity is often indicative of fear, uncertainty, and doubt (FUD) permeating the market.

Factors Contributing to the Decline

Two primary factors are driving this market downturn. First, uncertainty surrounding the upcoming U.S. presidential elections, set for November 5, is weighing heavily on investor sentiment. Ryan Lee, chief analyst at Bitget Research, noted in a Friday report that the crypto market is closely watching the election, with hopes that either Donald Trump or Kamala Harris may adopt a more favorable stance towards the cryptocurrency sector.

Second, the onset of outflows from spot Bitcoin exchange-traded funds (ETFs) on November 1 has contributed to the market’s decline. According to reports, these U.S.-based investment products experienced a net outflow of $54.9 million on Friday after seven consecutive days of inflows, during which they saw a total net inflow of over $5 billion in October. Spot Ethereum ETFs in the U.S. also faced a net outflow of $10.09 million on the same day.

These developments reflect a growing unease in the cryptocurrency market as investors react to political and economic signals.

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Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

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