Crypto Market Correction Triggers Whale Panic: Bitcoin and Ethereum Dips Sharpely

Crypto giants experience turbulence: Large holders reel as Bitcoin slips 1.75% and Ethereum faces downturn at close of October.

Crypto Market Correction Triggers Whale Panic: Bitcoin and Ethereum Dips Sharpely

Key Points

  • Bitcoin and Ethereum experienced a drop in value, triggering uncertainty among large holders.
  • The decline in value is linked to uncertainty surrounding the U.S. presidential elections and the start of spot BTC exchange-traded fund outflows.
  • Bitcoin and Ethereum have seen a decrease in value as October ended.
    This has caused fear, doubt, and uncertainty among large holders.

    Market Performance

    Bitcoin (BTC) saw a decline of 1.75% in the past 24 hours.
    It is currently trading at $68,500.
    The market cap of Bitcoin is presently at the $1.35 trillion mark.
    Its daily trading volume is $23 billion.

    Data from IntoTheBlock shows a decline in whale transactions.
    These are transactions involving at least $100,000 worth of BTC.
    This decline coincides with the fall in Bitcoin’s price.
    Whale transactions plunged from $67.8 billion on Oct. 29 to $21.1 billion on Nov. 2.

    Ethereum (ETH), the leading altcoin, also saw a similar trend to Bitcoin.
    Ethereum’s value declined by 2.2% over the past day.
    It is currently trading at $2,450.
    The market cap of Ethereum is close to the $300 billion mark.

    Large Ethereum transactions also saw a decline.
    These transactions plunged from $8.1 billion on Oct. 29 to $2.5 billion yesterday.

    A sharp decline in whale activity usually indicates fear, uncertainty, and doubt (FUD) and market-wide panic.

    Reasons for the Decline

    There are two main reasons for this fall.
    One is the uncertainty surrounding the U.S. presidential elections, scheduled for Nov. 5.

    According to a report, Ryan Lee, the chief analyst at Bitget Research, stated that the crypto market is anticipating that the future administration, whether led by [Donald] Trump or [Kamala] Harris, might adopt a friendlier stance toward the cryptocurrency sector.

    The other reason could be the start of spot BTC exchange-traded fund outflows on Nov. 1.
    A report indicates that these U.S.-based investment products saw a net outflow of $54.9 million on Friday.

    Spot ETH ETFs in the U.S. also experienced a net outflow of $10.09 million on the same day.
    The spot BTC ETF outflows occurred after seven consecutive days of inflows.
    Notably, these ETFs saw a net inflow of over $5 billion in October.

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