Bitcoin fell to an over one-month low on Tuesday, extending recent losses as uncertainty surrounding the U.S. regulatory outlook ahead of the midterm elections prompted investors to retreat from cryptocurrencies.
The world’s largest cryptocurrency dropped 0.44 percent to $77,657 by 1:40 GMT, its lowest level since early September. It was also nursing a loss of more than 6 percent in October, marking a continued period of weakness for the digital asset.
Bitcoin sees major outflows from spot ETFs
Broader cryptocurrency markets also came under pressure, with sentiment further dampened by the theft of more than $6 billion in Binance’s crypto holdings late last week. The exchange resumed withdrawals at a staggered pace this week and said it would cover all customer losses.
Bitcoin also faced pressure from significant outflows from spot exchange-traded funds on Monday, as institutional investors reacted to the Binance security breach.
A broader sell-off in technology stocks added to the downward pressure on cryptocurrencies, as concerns over elevated artificial intelligence spending weighed on risk appetite across financial markets.
Bitcoin’s decline spilled over into the wider cryptocurrency market, with most major altcoins also recording significant losses over the past month. Ether, the world’s second-largest cryptocurrency, fell 1.2 percent to $2,264, while XRP was relatively unchanged.
Solana declined 1.19 percent, Cardano lost 1.8 percent and BNB dropped 0.67 percent. Among memecoins, Dogecoin fell 0.27 percent, while the $TRUMP token slid 3.5 percent.
U.S. midterm elections add to regulatory uncertainty
Crypto markets remained on edge ahead of the U.S. midterm elections, with in-person voting scheduled to begin later on Tuesday.
The results are widely expected to shape the regulatory agenda for the remainder of President Donald Trump’s term. A potential Democratic takeover of Congress, where Republicans currently hold majorities in both chambers, could significantly reduce the prospects of further pro-cryptocurrency legislation over the next two years.
The Trump administration and Republican lawmakers have sought to advance a more supportive regulatory framework for digital assets. However, the proposed Clarity Act failed to secure congressional approval earlier this year.
A Republican setback in the midterms could leave further progress on pro-crypto regulation largely dependent on executive action, which may be more vulnerable to policy changes between administrations.
These concerns have contributed to a broad sell-off across digital assets, with cryptocurrencies struggling to recover their losses this week. Bitcoin has also failed to benefit from the historical seasonal strength typically associated with October, marking a second consecutive year in which the trend has not materialized.
