Key Points
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.
