Bitcoin has slipped below $77,000 as the cryptocurrency market struggles to regain momentum after the late-October sell-off. Institutional fund withdrawals, uncertainty over US interest rates and a cautious global market environment are weighing on investor sentiment.
Bitcoin was trading around $76,800 on November 3, down nearly 2% over 24 hours. Ethereum also declined around 1.7% to approximately $2,250, while selling pressure extended to other major cryptocurrencies, including Solana, BNB and Dogecoin.
So, what is driving the weakness, and what could influence Bitcoin’s next move?
Institutional outflows add to selling pressure
One of the key concerns for the crypto market is the reversal in institutional investment flows. US spot Bitcoin exchange-traded funds (ETFs) recorded around $643 million in net outflows on October 30, their largest single-day withdrawal since June.
Vikram Subburaj, CEO of Giottus.com, said the reversal in ETF flows following the late-October sell-off had added to the pressure on Bitcoin.
However, institutional activity has not been uniformly negative.
Strategy resumed its Bitcoin accumulation, purchasing 811 BTC worth $65.5 million, according to Prateek Gupta, Head of Business at Mudrex.
Traders betting on a recovery face losses
The latest decline has also triggered forced closures of leveraged positions. According to CoinGlass data cited by Nischal Shetty, Founder of WazirX, around $366 million worth of cryptocurrency positions were liquidated over 24 hours.
Long positions, or bets on prices rising, accounted for nearly 84% of these liquidations. This suggests that traders anticipating a recovery faced the bulk of the losses as prices moved lower.
US interest rates and elections remain in focus
Developments in the US are another factor influencing risk appetite. Concerns about the possibility of further interest rate tightening have kept investors cautious, as higher rates can reduce the appeal of riskier investments such as cryptocurrencies.
The US midterm elections and upcoming economic data releases could also influence sentiment, particularly through their implications for crypto regulation, fiscal policy and interest-rate expectations.
Riya Sehgal, Research Analyst at Delta Exchange, said the election outcome and upcoming US economic data could contribute to short-term volatility in the crypto market.
What should crypto investors watch?
Bitcoin’s ability to regain momentum will depend partly on institutional flows and broader macroeconomic developments.
Market participants are also watching whether the cryptocurrency can stabilise after losing its recent recovery momentum. Subburaj has advised investors against aggressive dip-buying, recommending staggered entries and modest position sizes instead.
Avinash Shekhar, Co-founder and CEO of Pi42, said global liquidity conditions, institutional activity and broader economic indicators would remain important in determining Bitcoin’s direction through November.
For investors, the latest correction underlines the volatility of crypto assets. Rather than treating a price decline as an automatic buying opportunity, investors should consider their risk appetite, investment horizon and exposure to the asset class.
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.