On November 3, Bitcoin's price continued to decline as investors reduced their cryptocurrency exposure ahead of the U.S. midterm elections, compounded by a massive hack at Binance and ongoing losses in tech stocks, further weighing on market sentiment. As of press time, Bitcoin was down 0.33% at $76,639.9, hitting a more than one-month low. Previously, Bitcoin fell over 6% cumulatively in October, failing to sustain its traditional October rally for the second consecutive year.
The following are market updates:
U.S. Midterm Elections Loom, Crypto Regulatory Policy Faces Uncertainty
The U.S. midterm elections will be held on November 3, and the results could affect cryptocurrency regulatory policy during the remainder of Trump's term. Previously, the Trump administration and Republicans had sought to push legislation favorable to the crypto industry, but the key CLARITY Act (Digital Asset Market Clarity Act) failed to pass Congress earlier this year. Currently, Republicans control both the Senate and the House. If Democrats gain control of Congress after the midterms, advancing further crypto-friendly legislation over the next two years may become more difficult. In that case, the Trump administration may rely more on executive measures to adjust regulatory policy, but such measures are also more susceptible to shifts in future administrations.
Binance Hit by Over $6 Billion Hack, Institutional Funds Continue to Exit
The cryptocurrency market is still digesting last week's massive hack at Binance. The attack resulted in the theft of over $6 billion in crypto assets. Binance began restoring withdrawal services in phases this week and promised to bear all customer losses, but the incident still dealt a significant blow to investor confidence. Meanwhile, U.S. spot Bitcoin ETFs saw large net outflows on Monday, reflecting institutional investors further reducing risk exposure following the security incident. Additionally, the continued sell-off in tech stocks has dragged down the cryptocurrency market. As investors grow increasingly concerned about tech giants' massive AI capital expenditures and investment returns, overall market risk appetite has declined, putting broad pressure on Bitcoin and other major cryptocurrencies.
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