Bitcoin (BTC) has experienced a notable decline, falling 2% to just under $77,000 during Asian morning hours on Tuesday. This drop effectively erased the modest gains made on Monday, as market sentiment remains shaky.
The cryptocurrency’s price recently slipped below the $77,600 mark it had touched late Sunday, where a brief resurgence of buyers was quickly countered by returning sellers.
According to analyst Ted Pillows, BTC has now closed four consecutive weeks in red. Historically, Bitcoin has never recorded five consecutive weekly losses during a bull run since 2011. Pillows emphasizes the importance of this week, stating that if a bull market is indeed underway, Bitcoin must close on a positive note.
Other cryptocurrencies followed suit as major coins also experienced declines on Tuesday. ZEC plunged nearly 10% to about $1,140, marking a sharp reversal from its leading position on Monday. HYPE fell 5% to around $84, while SOL decreased by 3% to approximately $92. BNB dropped below $700, and both Ether and DOGE saw reductions of about 2%, with Ether hovering just above $2,250. Interestingly, XRP remained steady at $1.25, while TRX was the sole major cryptocurrency to post a gain, rising by around 2%.
Market Turmoil from Chip Selloff
The downturn in cryptocurrency prices can be traced back to a broader selloff in the stock market, particularly affecting tech stocks. A gauge tracking U.S. chipmakers has now seen a three-day decline totaling 12%, pushing the Nasdaq 100 into correction territory, down 10% from its recent peak. Meanwhile, the S&P 500 index fell 0.5%, South Korea’s Kospi dropped over 3%, and the MSCI Asia Pacific Index fell almost 1%.
In the commodities market, oil prices took a sharp dive on Monday as hopes rose for a diplomatic resolution to the ongoing U.S.-Iran conflict. WTI crude plummeted more than 7% to touch $95.15, marking its lowest level since mid-October. Brent crude also fell 9%, trading around $103.30. Despite these developments, Bitcoin failed to capitalize on the news.
In contrast, gold prices increased by 2%, surpassing $3,950 per ounce after hitting a 13-month low of $3,891 on Friday, while investors awaited earnings reports from major companies like Apple and Palantir.
Impact of Binance Hack and ETF Withdrawals
Market sentiment has also been dampened by the aftermath of a significant hack at Binance, the largest cryptocurrency exchange. Approximately $6.3 billion was reported stolen, attributed to the North Korean hacking group TraderTraitor. Binance has since managed to cover about $6 billion of the loss using internal funds and has frozen $3 billion of the stolen assets.
Further complicating the landscape, U.S. spot Bitcoin ETFs recorded considerable outflows, shedding $399 million on November 2 alone. Fidelity’s Bitcoin fund was a rare exception, leading inflows at $6.68 million, while Ethereum funds faced a loss of $140 million. This followed an even larger outflow of $643.3 million on the previous Friday, the highest single-day withdrawal in four months.
As the U.S. midterm elections approach, tension mounts in the market, with results expected to influence trading activities as Asian markets open on Wednesday.
