Market Uncertainty Triggered by HighImpact Events Leads to Decrease in Bitcoin Price
Bitcoin (BTC) saw a decline of approximately 4 percent over the last 24 hours, trading around $69,532 on Friday, November 1, during the early hours of the European session. After hinting at a potential surge towards its all-time high earlier this week, the leading cryptocurrency concluded October with a trading price close to $70,000, falling short of the month’s peak closing figure of approximately $71,297.
In a similar vein, the altcoin market, spearheaded by Ethereum (ETH), mirrored this correction, contributing to a 5.2 percent decrease in the total cryptocurrency market capitalization. This increased volatility in the crypto space led to nearly $300 million being liquidated, with approximately $247 million involving long positions.
### Key Influences on Bitcoin’s Price Movement Today
#### Significant Selloff from U.S. Spot BTC ETFs
Good morning,
Yesterday, Bitcoin ETF inflows were once again positive, amounting to $32.3 million. This was largely influenced by BlackRock, which saw inflows of $318.8 million. However, other issuers experienced notable outflows: Fidelity faced $75.2 million in outflows, Bitwise had $74 million, Ark registered $94.2 million, and GBTC saw $31.1 million.
The price dropped in response…
— WhalePanda (@WhalePanda)
November 1, 2024
In the last 24 hours, Bitcoin’s price struggled to gain bullish momentum as many U.S. spot BTC ETF issuers reported significant cash outflows. While BlackRock’s IBIT recorded inflows of around $318 million, the other top five issuers experienced notable cash withdrawals on Thursday. Specifically, ARKB reported an outflow of $94 million, while Fidelity’s FBTC and Bitwise BITB each saw outflows of $75 million. Consequently, U.S. spot BTC ETFs registered a net inflow of about $32 million, following nearly $2 billion in inflows over the preceding two days.
#### End-of-Month Options Expiry
Bitcoin’s price also reacted to the expiration of $2 billion in options contracts on Friday, albeit this amount was smaller compared to the previous month. Market data from Coinglass indicated that the options volume on the Deribit exchange was approximately $1.96 billion in the past 24 hours. Earlier this week, Joshua Lim, head of derivatives at Arbelos Markets, pointed out that CME Bitcoin options had the highest trading volume, just days before the U.S. elections. Meanwhile, Open Interest (OI) climbed to $1.3 billion at the $80,000 strike price on Deribit.
#### Uncertainty from Significant Events
In recent weeks, Bitcoin’s price experienced steady growth due to strong demand from institutional investors. However, uncertainties surrounding short-term, high-impact news have made some investors wary, contributing to anticipated increases in volatility. As a result, more investors have begun taking profits, which has dampened bullish sentiment.
For example, the crypto market is bracing for a potential victory by Republican presidential candidate Donald Trump in the 2024 elections. Additionally, Wall Street analysts predict that the Federal Reserve may implement another rate cut in the coming week.
#### Emerging Short-Term Bearish Technical Outlook
— Ali (@ali_charts)
November 1, 2024
Crypto analyst Ali Martinez noted that Bitcoin encountered significant resistance above the $73,000 mark, making a brief correction necessary to revitalize bullish sentiment. From a technical perspective, it is anticipated that Bitcoin will find robust support above the $69,000 level, potentially paving the way for a rally towards $78,000 in the near future.
### Tags
Bitcoin
Crypto news
Price Analysis