Cryptocurrency Market Correction Causes Panic Among Bitcoin and Ethereum Whales
Bitcoin and Ethereum faced challenges as October drew to a close, causing concern and uncertainty among major holders.
Bitcoin (BTC) experienced a 1.75% drop in the last 24 hours, currently trading at $68,500. Its market cap stands at $1.35 trillion with a daily trading volume of $23 billion.
Data from IntoTheBlock shows that whale transactions, involving at least $100,000 worth of BTC, have decreased as the asset’s price fell from $67.8 billion on Oct. 29 to $21.1 billion on Nov. 2.
Ethereum (ETH), the top altcoin, mirrored Bitcoin’s downward trend. ETH declined by 2.2% in the past day, now priced at $2,450. Its market cap is nearing $300 billion.
Large Ethereum transactions also saw a decline from $8.1 billion on Oct. 29 to $2.5 billion recently.
A decrease in whale activity often signals fear, uncertainty, and market-wide panic.
Possible factors contributing to this drop include uncertainty surrounding the upcoming U.S. presidential elections on Nov. 5. Analyst Ryan Lee from Bitget Research suggested that the market is speculating on the potential cryptocurrency-friendly stance of the future administration, led by either Donald Trump or Kamala Harris.
Additionally, the start of outflows from spot BTC exchange-traded funds on Nov. 1 may have impacted the market. U.S.-based investment products saw a net outflow of $54.9 million on Friday, with spot ETH ETFs experiencing a net outflow of $10.09 million on the same day.
The spot BTC ETF outflows followed seven consecutive days of inflows, with these ETFs attracting over $5 billion in October.
In other news, Kraken secured $42.5 million in funding from Optimism, while Glow Labs raised $30 million in crypto venture capital.
