Bitcoin Dips to $76,500 Amid ETF Losses and Binance Hack Aftermath

On Tuesday, Bitcoin experienced its fourth consecutive weekly drop, trading around $76,500 as institutional investors withdrew funds from U.S. spot exchange-traded funds (ETFs) while grappling with the aftermath of Binance’s largest security incident to date.

The leading cryptocurrency was priced around $76,460 during mid-morning trading, reflecting a decline of 2.19% over the past 24 hours and 3.59% over the last week, based on data from crypto.news. Trading volume surpassed $26.6 billion, with the total market capitalization hovering near $1.54 trillion. This latest decline overshadowed a brief rebound from the previous day when prices temporarily rose toward $78,000, failing to regain the significant $80,000 mark.

The majority of the sell-off appeared to occur within the ETF sector. According to SoSoValue, U.S. spot Bitcoin funds saw net outflows of $398.6 million on November 2, with BlackRock’s IBIT alone responsible for $405.3 million in redemptions, exceeding the overall withdrawal figure. This indicates that other issuers managed to attract some inflows, partially mitigating the overall impact, with Fidelity’s FBTC gaining $6.68 million during this timeframe.

The situation was even more severe on Friday, when spot Bitcoin ETFs lost $643.3 million in a single day on October 30, marking their largest one-day drop since June 25 and breaking a four-month period without significant losses. The month of October concluded with net outflows of $515.03 million, marking the end of a three-month accumulation trend. Ethereum-related products encountered similar market pressures, with spot Ether ETFs experiencing losses of $155.9 million on Friday and a total of $431.5 million for that week.

Note: Data collected from SoSoValue and crypto.news.

The catalyst for this institutional exit was Binance’s announcement on October 29, revealing that cybercriminals had stolen approximately $6.3 billion in assets across several blockchain networks. Following this, the exchange temporarily halted customer withdrawals to conduct security assessments, ultimately restoring access across 15 networks, including Bitcoin, Ethereum, XRP Ledger, Solana, BNB Smart Chain, Tron, Dogecoin, Avalanche, Sui, Polygon, Arbitrum, and Zcash.

Binance reported that it had recovered or restored around 95% of the lost assets, improving upon an earlier estimate of 90%, and allocated more than $6.34 billion in corporate funds to secure customer holdings. The exchange highlighted its Secure Asset Fund for Users, an emergency insurance reserve, in addition to company funds. Nevertheless, users managed to withdraw a net total of approximately $3.64 billion within about nine and a half hours of the resumption of withdrawals. Later reports indicated that this figure may have reached around $5.14 billion within 24 hours, constituting about 3% of assets on the platform. However, inflows subsequently stabilized, and Binance confirmed that overall user deposits remained robust.

According to Rick Maeda, market leader at Laevitas, the ETF liquidations should be viewed as strategic position adjustments rather than outright withdrawals. He mentioned that these outflows represent less than 1% of the approximately $98.14 billion in net assets held by U.S. spot Bitcoin funds, anticipating that outflows will stabilize as investors monitor the recovery efforts of the exchange.

Analyst Dominick John from Zeus Research noted that for ETF demand to recover, there first needs to be restored liquidity and more stable market conditions. The Crypto Fear and Greed Index registered a value of 37 on Sunday, suggesting a mood of caution rather than panic among investors.

Chief Analyst Jeff Ko from ViaBTC mentioned that the upcoming U.S. midterm elections represent another important factor, as a change in congressional leadership could potentially influence the development of crypto market-structure laws.

Other risk assets did not provide refuge. Shares in technology, particularly those related to artificial intelligence and semiconductors, saw further declines, and Asian markets also weakened on Tuesday as investors prepared for the impending election. The overall cryptocurrency market fell by 1.92% within a 24-hour span. Solana experienced a drop of around 3%, BNB dropped below $700, Ethereum traded close to $2,250, and Hyperliquid’s HYPE decreased by roughly 5%.

Leverage appeared to exacerbate the situation. Data from CoinGlass indicated that nearly $100 million in Bitcoin positions were liquidated in the last 24 hours, with most losses occurring among long positions as exchanges automatically closed trades that were underfunded.

Chartists are paying close attention to a tight range. On the weekly chart, the 50-week simple moving average (SMA) is positioned at $75,597, serving as initial support; a drop below this level could lead to a challenge of the 200-week SMA at approximately $67,776. On the upside, bullish traders will need to establish a consistent rally above the 61.8% Fibonacci retracement at $78,661, followed by the 50% level near $87,823 and the 100-week SMA at $89,134.

Note: Levels are based on analysis of weekly chart data.

Momentum indicators are currently weak. The weekly Relative Strength Index (RSI) is positioned at 49, and the MACD histogram remains positive but is decreasing. On the daily chart, Bitcoin is trading beneath its 100-day exponential moving average of $77,821 and its 50-day EMA of $80,287, while remaining slightly above the 200-day EMA at $76,466. The daily RSI stands at around 34, indicating weak buying interest without reaching the traditional oversold threshold of 30.

Crypto analyst That Martini Guy, who shares insights under this pseudonym, marked $76,400 as a critical level to watch after Bitcoin failed to regain support around $79,500. He cautioned that a convincing four-hour close below this level could lead to sharper declines, stating, “I wouldn’t be quick to call a bottom just because BTC is testing support.” Conversely, a movement back above $79,500 would signal a potential shift in momentum.

Another analyst, Daan Crypto Trades, took a broader perspective, noting that Bitcoin has never recorded two consecutive negative annual candles. “The yearly open for 2026 is around $87.5K,” he pointed out, highlighting that the year-to-date performance remains negative at current price levels.

A recovery above $80,287 would pave the way for a test of $85,000. Should it decisively fall below $76,466 alongside ongoing ETF redemptions, the next major support could come into play. The next significant U.S. economic data release is expected on November 6, featuring the October employment figures.