Bitcoin traded around $76,800 on November 4, as continued outflows from US spot Bitcoin exchange-traded funds (ETFs) and uncertainty surrounding the US midterm elections kept investor sentiment cautious.
Bitcoin slipped 0.36% to $76,843, while Ethereum edged up 0.06% to $2,259, according to Purvang Mashru, Lead Analyst at BitDelta India. Among the top 10 cryptocurrencies, six advanced, while BNB and Solana remained lower.
Institutional demand for Bitcoin has remained weak.
US spot Bitcoin ETFs recorded net outflows of $398.6 million on November 2, following withdrawals of $643.2 million on October 30, taking the combined outflows to over $1 billion across the two trading sessions.
Another indicator of tightening liquidity is the decline in stablecoin supply.
The circulating market value of US dollar-pegged stablecoins fell by $5.55 billion, or 1.84%, between October 27 and November 3, to $296.01 billion. Stablecoins are commonly used to facilitate cryptocurrency trading and settlements.
Nischal Shetty, Founder of WazirX, said the crypto market is showing signs of stabilisation, although broader sentiment remained cautious. He identified $76,000 and $75,000 as key downside levels for Bitcoin, while $77,000-$78,000 remains an immediate upside range to watch.
Uncertainty over the US midterm election outcome has also brought the pace of cryptocurrency policymaking into focus.
Shetty said expectations of slower legislation or greater regulatory uncertainty could affect investor sentiment, although institutional flows, interest-rate expectations and broader market conditions would remain important drivers.
Vikas Gupta, Country Manager – India at Bybit, said outflows from US spot Bitcoin and Ethereum ETFs indicated a cautious approach among some institutional investors. He added that stabilisation in global equity markets, improving risk appetite and renewed institutional inflows could support a recovery in cryptocurrency prices.
What investors will watch
Market participants will track ETF flows, global market developments and upcoming US economic data for cues on Bitcoin’s near-term direction.
The US October employment report, scheduled for November 6, is among the next key economic releases.
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Bitcoin’s immediate support is around $76,000-$76,300, while the $78,000 level remains an important upside reference, according to market participants. These levels indicate areas traders are monitoring and do not establish a definite price direction.
NOTE TO READERS
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.