Bitcoin stabilized near $75,600 on Friday, recovering slightly after a sharp 6% drop from above $80,000 the day before. Smaller cryptocurrencies like BNB, Ether, and Solana remained flat. The selloff followed a broader market downturn triggered by weak chipmaker earnings and a Democratic victory in the midterm elections.
Analysts caution that while selling pressure has eased, the market remains fragile. Dean Chen of Bitunix described the current move as 'selling pressure easing' rather than a sign of fresh accumulation. The crypto sector is still reeling from a $6.3 billion hack on Binance Holdings Ltd. on October 29, which has dampened investor confidence.
The broader market volatility has been exacerbated by declines in artificial intelligence stocks, many of which are linked to crypto mining companies. Axel Rudolph of IG noted that the selloff reflects concerns over AI spending returns and potential regulatory tightening. Despite the turbulence, Bitcoin has shown relative strength, suggesting possible decoupling from the tech sector.
Spot Bitcoin exchange-traded funds in the US saw $430 million in outflows on Thursday, with Fidelity Wise Origin Bitcoin Fund and BlackRock Inc.’s IBIT leading the withdrawals. Samuel Leyne of Marex warned that the recent bounce appears more like brief relief than a sustained recovery, emphasizing the need for a strong catalyst to restore confidence.