Bitcoin Falls to Two-Month Low as US Crypto Rule Fears Hit Markets
Bitcoin fell to $73,708, its lowest since August, as investors priced in tougher US crypto rules after the Democrats' midterm sweep of Congress.
Image: Wikimedia Commons / Satheesh Sankaran
Bitcoin fell to its lowest price since August in late Sunday trading, dropping more than 2 per cent to $73,708, as investors priced in the prospect of tougher regulation in the United States after the Democrats won control of both houses of Congress in last week's midterm elections. Ether fell about 5 per cent to $2,223, also its lowest since August, Reuters reported. the report.
The slide continued into Monday, when bitcoin briefly approached $74,500, down about 2 per cent from 24 hours earlier, after rebounding from a weekly low of about $73,700 on Sunday. It had dropped to around $73,761 late on Sunday before buying pressure pushed it back above $75,000, but that rebound failed to hold.
Key Takeaways
- Bitcoin fell more than 2 per cent to $73,708 in late Sunday trading, its lowest since August; Ether fell about 5 per cent to $2,223.
- More than $1 billion in crypto positions were liquidated within 24 hours, and US spot bitcoin ETFs recorded net outflows of nearly $1.28 billion between November 2 and November 6.
- Investors are pricing in tougher US crypto rules after the Democrats won both houses of Congress on November 3, though no new crypto law has been passed.
More than $1 billion in crypto positions were liquidated within 24 hours, according to CoinGlass data, with long positions accounting for about $931 million of the total. Ether liquidations came to about $455 million and bitcoin liquidations to about $278 million, and the largest single liquidation was an ether position worth about $48 million.
Institutional demand has also weakened. US spot bitcoin exchange-traded funds recorded net outflows of nearly $1.28 billion between November 2 and November 6, according to Farside Investors, with BlackRock's iShares Bitcoin Trust accounting for about $1.21 billion of the withdrawals. Last Friday alone saw a net outflow of $411.9 million. Sustained outflows matter to traders because fund redemptions can lead to bitcoin sales through settlement arrangements.
The trigger was political: the Democrats won control of both the House of Representatives and the Senate in the midterm elections on November 3, and traders are now pricing in a harder road for crypto-friendly laws. The industry-backed CLARITY Act, a bill that would set federal rules for crypto markets and decide whether the Securities and Exchange Commission or the Commodity Futures Trading Commission polices tokens and trading platforms, stalled in the Senate in September. The new Congress does not take over until January 2027, and no new crypto law has been passed, so the tougher rules investors fear are expectations, not enacted laws.
The market was already on edge before the election result. Bitcoin had jumped above $80,000 just after the vote, then gave back the gains, falling from $80,882 overnight on November 5 to $75,573 that afternoon, with the slide continuing into the weekend. Traders were also shaken by the reported $6.3 billion theft from Binance, the largest crypto theft on record, and by stalled negotiations between Washington and Tehran weighing on risk-sensitive assets. The wider market wobble also hit lenders, with banks growing wary of AI debt after the sell-off.
The sell-off in numbers
| Measure | Figure |
|---|---|
| Bitcoin late Sunday | $73,708 |
| Ether | $2,223 |
| Positions liquidated, 24 hours | More than $1 billion |
| Long liquidations | About $931 million |
| Spot bitcoin ETF outflows Nov 2-6 | Nearly $1.28 billion |
| BlackRock IBIT share of outflows | About $1.21 billion |
| Largest single liquidation (ether) | About $48 million |
Frequently Asked Questions
How far did Bitcoin fall?
It dropped more than 2 per cent to $73,708 in late Sunday trading, its lowest since August; Ether fell about 5 per cent to $2,223.
Has any new crypto law been passed?
No. The new Congress does not take over until January 2027, and the CLARITY Act stalled in the Senate in September, so the tougher rules investors fear are expectations, not enacted laws.
What is the next test for traders?
The US Bureau of Labor Statistics releases October consumer price inflation data on Tuesday at 8:30 a.m. Eastern Time. Traders are also watching whether bitcoin can hold above the $73,000 area, with resistance near $75,600.
For crypto holders, the sell-off is about politics, not a single market event. The signals to watch are whether bitcoin holds above the $73,000 area, Tuesday's October consumer price inflation data, ETF flows after nearly $1.28 billion left spot bitcoin funds in a week, and any comments from Democratic leaders before the new Congress takes over in January 2027.
