As a seasoned researcher with a knack for deciphering market trends, I find myself intrigued by the recent dip in Bitcoin and Ethereum prices, particularly as we approach the end of October. The decline in large transactions, a telltale sign of whale activity, is indeed a concerning development that suggests fear, uncertainty, and doubt among large holders.
As October drew to a close, both Bitcoin and Ethereum faced difficulties, leading to apprehension, questioning, and uncertainty amongst significant investors.
In the last 24 hours, Bitcoin (BTC) has decreased by approximately 1.75% and is presently being traded at around $68,500. At this moment, its market capitalization stands at a massive $1.35 trillion, and the daily trading volume amounts to about $23 billion.
Based on information from IntoTheBlock, we’re seeing a decrease in whale transactions (transactions valued at over $100,000 in BTC) as the asset’s price drops. This decline is substantial, going from approximately $67.8 billion on October 29 to around $21.1 billion on November 2.
As an analyst, I’m observing that Ethereum, the foremost alternative coin, has mirrored Bitcoin’s trend in recent times. In the last 24 hours, Ethereum dipped by approximately 2.2%, with its current value being around $2,450 at the time of this report. Notably, its market capitalization is flirting with the massive figure of nearly $300 billion.
Large Ethereum transactions also plunged from $8.1 billion on Oct. 29 to $2.5 billion yesterday.
Sharp declines in whale activity usually hint at FUD and market-wide panic.
Two main reasons
One factor contributing to the recent decline is the confusion caused by the upcoming U.S. presidential election on November 5th.
Based on a report published on Friday, Ryan Lee, an analyst at Bitget Research, stated to crypto.news that the cryptocurrency market is optimistic about the possibility of the upcoming administration, whether it’s Trump or Harris, adopting a more favorable stance towards the cryptocurrency industry.
An additional possible explanation might be the commencement of outflows from Bitcoin exchange-traded funds (ETFs) starting November 1. According to an article published on crypto.news, these U.S.-based investment products experienced a net outflow of approximately $54.9 million on Friday.
Spot ETH ETFs in the U.S. also saw a net outflow of $10.09 million on the same day.
After seven straight days of investments into the Bitcoin ETF, there was an outflow of funds following that period. Interestingly, in October alone, these ETFs attracted more than $5 billion collectively.
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2024-11-03 18:34