- Bitcoin fell to US$76,249, down 5.8% over the week, amid fallout from the US$6.3 billion Binance hack and ongoing macroeconomic uncertainty.
- The US midterm elections could reshape crypto regulation, with Democrats projected to win the House while Senate control remained uncertain.
- US spot Bitcoin ETFs recorded over US$1 billion in combined net outflows across Friday and Monday, signalling continued investor caution.
- BlackRock’s IBIT suffered US$405.3 million in Monday outflows, its largest daily withdrawal since June, while Fidelity’s FBTC attracted US$6.7 million.
Bitcoin (BTC) is sliding closer towards the US$76K (AU$109.2K) mark. At the time of writing, it was trading for US$76,249 (AU$109,559), down 0.7% over the past day and 5.8% over the past week. This comes after the Binance hack, in which US$6.3 billion (AU$9 billion) was stolen, and users withdrew US$4.7 billion (AU$6.6 billion) following the restart of the exchange.
Further potential downside pressure comes amid the Middle East crisis and high energy prices worldwide. There are also the US midterms, which are causing uncertainty in the markets, as well as elevated inflation fears and uncertainty around the US Fed’s next interest-rate decision in December.
The US midterms are a developing story, and at the time of writing, vote counts were still underway. Early reporting suggests, though, that the Democrats are projected to take over the House, while control of the Senate remains uncertain. Ahead of the elections, prediction markets favoured the Democrats over the Republicans, with around a 76% chance of a Senate win and a 95% chance of a House win.
A shift towards the Dems could have implications for crypto. Democrats would likely dominate key committees overseeing crypto regulation in whichever chamber they control, potentially affecting the progress of crypto legislation.
Read more: Brazil’s Largest Crypto Exchange Hit by Security Breach Days After Binance Hack
ETF Outflows Continue
Meanwhile, US spot Bitcoin ETFs continue to see large net outflows. While Monday’s US$398.6 million (AU$572.7 million) in net outflows were lower than Friday’s US$643.2 million (AU$924.1 million), the individual funds tell an interesting story. Combined, the funds recorded over US$1 billion (AU$1.4 billion) in net outflows across the two trading sessions.
Fidelity’s FBTC had US$6.7 million (AU$9.6 million) in net inflows, while BlackRock’s IBIT saw US$405.3 million (AU$582.3 million) in net outflows. It was IBIT’s largest daily net outflow since June, when the fund lost US$444.5 million (AU$638.6 million) in a single session.
So IBIT saw substantial net redemptions while FBTC attracted additional investment, although in much smaller amounts.
All other funds saw zero net flows on Monday, with most figures for Tuesday not yet fully reported.
Read also: XRP Ledger Set to Fix Token Creation Loophole After Two-Week Delay
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
