Bitcoin entered November under pressure as deteriorating sentiment, institutional selling and the fallout from a record Binance hack added to concerns that its recent decline may continue.
The cryptocurrency fell approximately 7.3% in October, ending the month near $77,558 after opening at about $83,554. Bitcoin was trading at $77,939.0 at 14:00 ET (18:00 GMT) on November 1, up 0.36% for the day, after reaching a monthly low of $76,314 during the selloff.
The Crypto Fear and Greed Index dropped from 70 on October 4 to 36 on October 30, moving from greed into fear in less than four weeks. Historical comparisons showed that Bitcoin traded lower 30 days after three previous monthly declines of more than 30 points in the index, although that limited sample does not provide a dependable forecast.
Selling through investment products also intensified. U.S. spot Bitcoin exchange-traded funds recorded $643.3 million in net outflows on October 30, their largest daily withdrawal of the month and a reversal of four consecutive sessions of inflows. Cumulative ETF inflows declined to approximately $57 billion from an October peak of $57.8 billion.
Derivatives markets pointed to increased risk, with Bitcoin futures open interest reaching a five-week high of 686,000 BTC. Long positions represented 79% of liquidations. Bitfinex analysts identified $75,000 as an important support level and said a sustained recovery would require Bitcoin to regain $80,000.
Market concerns were compounded by Binance’s record $6.3 billion cryptocurrency theft. The FBI attributed the incident to North Korea’s TraderTraitor hacking group and said the attackers were converting the stolen assets mainly into Ethereum before potentially laundering the proceeds through decentralized finance platforms and cryptocurrency swap services.
The FBI urged crypto businesses to block transactions linked to the identified addresses. Chainalysis warned that thousands of wallets were already involved. Binance said it had replenished approximately 90% of the stolen assets and would absorb customer losses. Strategy Executive Chairman Michael Saylor supported the exchange’s reimbursement commitment and predicted that the breach would lead to stronger security across the industry.
The market turbulence came shortly after the October 31 anniversary of Bitcoin’s white paper, which marked 18 years since Satoshi Nakamoto presented the cryptocurrency’s original design.
Other major cryptocurrencies posted mixed performance on November 1. Ether rose 0.5% to $2,263.56, while XRP slipped 0.2% to $1.2486. Solana declined 1.5% to $94.330, and BNB edged up 0.21% to $705.23. Cardano fell 0.8% to $0.1916, while Dogecoin lost 0.7%. Among meme coins, TRUMP was flat and Shiba Inu declined 0.84%.
Sources: Investing.com News.