Bitcoin and Ethereum struggled in late October, sparking fear, doubt, and uncertainty among large holders.
Bitcoin (BTC) has fallen 1.75% in the past 24 hours and is trading at $68,500 at the time of writing. Its market capitalization currently stands at $1.35 trillion with a daily trading volume of $23 billion.
According to data provided by IntoTheBlock, the daily amount of whale transactions, representing at least $100,000 worth of BTC, began to decline as the asset’s price fell, from $67.8 billion on October 29 to $21.1 billion on November 2.
Ethereum (ETH), the leading altcoin, has seen similar momentum to Bitcoin. ETH is down 2.2% over the past day and is changing hands at $2,450 at the time of reporting. Its market capitalization is close to the $300 billion mark.
Large Ethereum transactions also fell from $8.1 billion on October 29 to $2.5 billion yesterday.
A sharp decline in whale activity usually portends market-wide FUD and panic.
Two main reasons
One of the reasons for this decline is the uncertainty surrounding the US presidential elections, scheduled for November 5.
According to a report on Friday, Ryan Lee, the chief analyst at Bitget Research, told crypto.news that the crypto market expects the incoming administration, whether it is led by (Donald) Trump or (Kamala) Harris, could take a more friendly stance. towards the cryptocurrency sector.
Another reason could be the start of BTC spot exchange-traded fund outflows on November 1. According to a report by crypto.news, these US-based investment products saw a net outflow of $54.9 million on Friday.
US Spot ETH ETFs also saw a net outflow of $10.09 million on the same day.
BTC ETF spot outflows occurred after seven consecutive days of inflows. These ETFs notably recorded a net inflow of more than $5 billion in October.
