Bitcoin briefly slipped below USD 76,000 during November 4 trading as US midterm election results, institutional withdrawals and leveraged liquidations unsettled cryptocurrency markets. The largest digital asset subsequently recovered toward USD 77,300, although volatility remained elevated.
Bitcoin declined from approximately USD 77,970 to USD 75,740 between 21:45 and 03:10 UTC as election results were out. NBC News reported that Democrats were projected to win control of the House of Representatives. CNBC estimated at least 235 Democratic seats, exceeding the 218 required for a majority.
Prediction platform Kalshi placed the probability of Democratic Senate control at 99% overnight, although trading probabilities do not constitute official election results. Investors weighed whether changes in congressional leadership could delay cryptocurrency legislation or increase regulatory scrutiny.
The NASDAQ 100 futures fell approximately 2%, while S&P 500 futures dropped 1.1%. Dow futures lost 367 points. Meanwhile, total cryptocurrency market capitalization declined roughly 2.9% to USD 2.58 trillion.
Ethereum traded near USD 2,240, while XRP hovered around USD 1.26. The Crypto Fear and Greed Index stood at 34, indicating ‘Fear’ among market participants.
Institutional demand weakened before the election-driven volatility. SoSoValue data suggests that US spot Bitcoin ETFs recorded a net outflow of USD 643.2 million on October 30 and USD 398.6 million on November 2.
Another USD 20.6 million exited on November 3, bringing combined withdrawals across those sessions above USD 1.06 billion. The recent Binance security breach also contributed to investor uncertainty.
CoinGlass’s data shows that approximately USD 657 million in leveraged cryptocurrency positions were liquidated, including USD 584 million in long positions. Forced selling can intensify declines when liquidity becomes limited, particularly during periods of political uncertainty.
Bitcoin's 50-week moving average stood near USD 75,602, with additional technical support around USD 73,800. A sustained recovery above USD 77,000 could ease immediate pressure, although technical levels cannot guarantee price direction.
Investors are closely monitoring ETF flows, Wednesday's US stock market opening and upcoming employment data for further indications of market sentiment.
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