Bitcoin slides to one-month low after Binance hack

Bitcoin ↘ 0.96% fell below $77,000 on Tuesday, November 3, its lowest level since early September. Investors were still taking in last week's record theft at Binance, and they were cautious as Americans began voting in the midterm elections. The world's largest cryptocurrency had already lost more than 6% in October. On Monday it also came under pressure from heavy outflows from US spot exchange-traded funds, as institutional investors reacted to the hack, Investing.com reported.finance.yahoo.com

Other major coins fell too. Ether Ethereum ↘ 0.80%, Solana ↘ 1.02%, Cardano ↗ 0.90%, BNB ↘ 0.26% and Dogecoin ↘ 0.14% all declined, while XRP ↗ 0.13% was little changed, according to Investing.com. CoinGlass data cited by WazirX founder Nischal Shetty showed about $366 million in leveraged crypto positions were liquidated over 24 hours. Bets on rising prices made up nearly 84% of that total, CNBC-TV18 reported.cnbctv18.com+1

Fallout from a record heist

Hackers took about $6.3 billion from Binance's internet-connected hot wallets on October 29, in what is believed to be the largest crypto theft on record, Help Net Security reported. The FBI has blamed TraderTraitor, a hacking group linked to North Korea. Binance resumed withdrawals in stages on Sunday, November 1. It said it had covered about 95% of the stolen assets with its own reserves, TechCrunch reported. In the first nine and a half hours after reopening, customers withdrew a net $3.64 billion, or about 2.1% of the exchange's assets, according to Investor Daily.investordaily.com.au+2

Institutional money has also left the market. US spot bitcoin ETFs had $643.3 million in net outflows on Friday, October 30, the largest single day since June 25. Spot ether ETFs lost $431.5 million over the week, Blockhead reported. Other attacks added to the unease. Brazil's Mercado Bitcoin halted deposits and withdrawals after a security incident involving about $46.3 million in assets, Investing.com noted.blockhead.co+1

Midterms cloud the regulatory outlook

Traders are watching the midterm elections because the results could shape crypto regulation for the rest of President Donald Trump's term. Investing.com wrote that a Democratic sweep of Congress would effectively end the prospect of more pro-crypto legislation for two years. Republicans failed earlier this year to get the key Clarity Act through Congress, according to Investing.com. A broader sell-off in technology stocks, driven by worries about heavy spending on artificial intelligence, has also hurt demand for riskier assets.finance.yahoo.com

Some buyers have stepped in. Strategy bought 811 bitcoin worth $65.5 million, CNBC-TV18 Comcast Corporation ↗ 0.49% reported. Riya Sehgal, an analyst at Delta Exchange, said the election result and upcoming US economic data could cause short-term swings. Vikram Subburaj, chief executive of Giottus.com, advised against aggressive dip-buying and suggested buying in stages with modest position sizes instead.cnbctv18.com