As October concludes, both Bitcoin and Ethereum have shown declines, causing concern and hesitation among large crypto holders, or “whales.” Bitcoin experienced a 1.75% drop in the last 24 hours, trading at $68,500, with a market cap of $1.35 trillion and a 24-hour trading volume of $23 billion. Data from IntoTheBlock reveals that daily whale transactions (valued at $100,000 or more) have seen a sharp drop, with Bitcoin’s high-value transactions decreasing from $67.8 billion on October 29 to $21.1 billion by November 2.
Ethereum Also Faces Significant Decline Ethereum has mirrored Bitcoin’s downward trend, with ETH down by 2.2%, currently trading at $2,450 and holding a market cap close to $300 billion. Large Ethereum transactions fell from $8.1 billion on October 29 to $2.5 billion, indicating a similar decline in whale activity. Generally, significant drops in large transactions suggest panic or fear among big investors, often signaling uncertainty across the market.
Key Drivers Behind the Market Drop Two primary factors appear to be influencing the downturn:
- U.S. Presidential Election Uncertainty: With the U.S. presidential election approaching on November 5, investor sentiment has been shaky. Ryan Lee, Chief Analyst at Bitget Research, shared with crypto.news that market players are hopeful for a pro-crypto administration, regardless of whether it’s led by Donald Trump or Kamala Harris.
- Spot Bitcoin and Ethereum ETF Outflows: Another major influence on recent market movements is the outflow from spot BTC and ETH ETFs. Reports show a net outflow of $54.9 million for Bitcoin ETFs and $10.09 million for Ethereum ETFs on November 1, after a period of consistent inflows throughout October.
These ETF outflows come after a streak of steady inflows, which had brought over $5 billion into BTC ETFs last month. This shift has amplified concerns over potential volatility in the crypto market.
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