Bitcoin is weakening around $75,000. Analysts see sentiment cooling as worries grow that U.S. crypto regulation could tighten after the midterm elections and as money flows out of U.S. spot exchange-traded funds (ETFs).
As of 8:30 a.m. on the 10th, Bitcoin was trading at $75,191 on CoinMarketCap, a global crypto price-tracking site, down 0.35% from 24 hours earlier.
Major altcoins (cryptocurrencies other than Bitcoin) also fell across the board. Ether, the No. 2 token by market cap, traded at $2,132, down 1.17% in 24 hours. XRP slipped 2.86% to $1.09, and Solana fell 1.53% to $86.5.
The recent crypto slump is seen as stemming from greater regulatory uncertainty in U.S. politics. After Democrats secured control of Congress in the U.S. midterm elections on the 3rd, concerns spread that oversight and regulation of the crypto industry could tighten. The prospect of a shift away from the previously crypto-friendly policy stance is weighing on investor sentiment.
Outflows by institutional investors are adding to the downward pressure. On the 5th, U.S. spot Bitcoin and Ether ETFs saw a combined net outflow of $530.1 million. Although institutional inflows via ETFs had been one of the main supports for crypto prices, the recent reversal in flows is now acting as a drag on the market.
Market watchers cite shifts in U.S. crypto policy and spot ETF flows as key variables that will steer prices ahead. Bitcoin has rebounded to around $75,000 after its recent plunge, but if institutional buying does not return, volatility could persist for the time being.
