US crypto market today: Bitcoin, Ether hit lowest levels since August as Democrats' midterm win raises regulation fears | Hindustan Times - Hindustan Times
Bitcoin and Ether, the world's two largest cryptocurrencies, dropped to their lowest levels since August as investors feared stricter regulations following Democrats' midterm election victory.
Bitcoin and Ether, the world's two largest cryptocurrencies, dropped to their lowest levels since August as investors feared stricter regulations following Democrats' midterm election victory. The market reacted to concerns that a Democrat-controlled US Congress could bring increased oversight to the crypto industry.
Bitcoin, the world's largest cryptocurrency by market value, fell around 2% to $73,708, marking its lowest level since August. Ether, the second-largest, dropped approximately 5% to $2,223, also reaching its lowest point since August according to Reuters.
Regulation Fears Mount
Several Democratic lawmakers have criticized the crypto industry and called for stronger rules, particularly around anti-money laundering and risk management requirements. US Senator Elizabeth Warren, a prominent crypto critic, is expected to lead the powerful Senate Banking Committee, which has significant influence over financial regulations.
If Warren takes charge of the Senate Banking Committee, the cryptocurrency industry could face greater scrutiny. Her leadership could increase pressure on crypto companies to follow stricter financial rules.
ETFs See Major Outflows
Spot Bitcoin exchange-traded funds (ETFs) faced significant withdrawals last week, with outflows totaling $1.28 billion. This marked their second consecutive week of outflows and represented their worst weekly performance since late June, according to data from SoSoValue.
The heavy withdrawals indicate that large investors and financial institutions are becoming more cautious about Bitcoin amid regulatory uncertainty. The selling suggests that concerns about future crypto regulations are affecting institutional demand.
Broader Crypto Market Decline
The cryptocurrency market's decline extended beyond Bitcoin and Ether, with several other major digital currencies falling on Monday. XRP dropped 6.4% and approached the $1 mark, while Solana and Cardano each fell around 3%. BNB declined 2.4%, and Dogecoin fell 3.3%.
The market slump was exacerbated by a $6 billion heist at Binance, the world's largest cryptocurrency exchange, which added to investor concerns. Unlike other financial markets, particularly technology stocks, cryptocurrency prices largely missed any rebound as regulatory worries continued to weigh on the sector.
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