The cryptocurrency market faced another major sell-off on November 9, with Bitcoin falling below $75,000 and Ethereum dropping close to $2,100. Growing concerns over US cryptocurrency regulations, the reported Binance security breach, and continued withdrawals from institutional investors have added pressure to the market, leaving major digital assets struggling to recover.
Bitcoin was trading at around $74,584 at the time of writing, down 1.4% over the previous 24 hours and 4.9% over the past week. Ethereum suffered even heavier losses, falling 4.4% to approximately $2,137, bringing its weekly decline to 7.4%.
Despite the falling prices, trading activity remained high. Bitcoin recorded nearly $21 billion in daily trading volume, while Ethereum saw approximately $10.5 billion. The latest decline also pushed both cryptocurrencies toward price levels not seen since August, showing how quickly market sentiment has weakened.
One of the major factors affecting investor confidence is the outcome of last week’s US midterm elections. Democratic victories in both chambers of Congress have raised concerns about the future direction of cryptocurrency regulation in the United States.
Investors are worried that the new political environment could lead to stricter rules for digital asset companies and slow down legislation that the cryptocurrency industry has been supporting. The industry has spent more than $300 million supporting candidates from both major political parties across recent election cycles, hoping to encourage clearer regulations and a more supportive environment for digital assets.
President Donald Trump’s administration has taken a more supportive approach toward the cryptocurrency industry, including efforts to reduce regulatory pressure, establish a strategic Bitcoin reserve, and expand access to crypto-related financial products. However, the latest election results have created uncertainty about whether these policies and other industry-backed proposals will continue moving forward at the same pace.
Democratic lawmakers have also discussed giving the Securities and Exchange Commission (SEC) a stronger role in overseeing cryptocurrency markets, along with introducing additional investor protections. These discussions have added another layer of uncertainty for investors who are already dealing with falling prices.
Another major concern is the reported $6.34 billion security breach involving Binance on October 29. The incident has raised fresh questions about cryptocurrency exchange security and the safety of customer assets, adding pressure to an already weak market.
Binance temporarily suspended withdrawals following the incident but later restored services and said it would cover customer losses. However, many users remained concerned and began moving their funds away from the exchange.
After withdrawals resumed, customers reportedly removed a net $4.72 billion from Binance, representing around 2.8% of the assets held on the platform. The large withdrawals show that concerns about exchange security have continued even after normal services returned.
The FBI attributed the attack to hackers linked to North Korea, while Binance said it was working with other cryptocurrency companies to track and freeze the stolen funds. Blockchain analytics firm Santiment also reported that approximately 28,316 BTC had moved out of Binance-associated wallets through November 5.
Market sentiment has weakened further as negative discussions about Bitcoin increased across social media. Santiment reported just 0.37 positive comments for every negative comment, showing that investors and traders have become increasingly cautious following the security incident.
Institutional investors have also added to the selling pressure. US spot Bitcoin and Ethereum exchange-traded funds (ETFs) recorded combined net outflows of $530.1 million on November 5, indicating that demand from traditional financial investors has weakened.
Bitcoin ETFs accounted for approximately $430.2 million in withdrawals, while Ethereum ETFs recorded another $99.9 million in net outflows. These withdrawals have become another concern for the market because ETF investments have been an important source of institutional demand for both cryptocurrencies.
Andreja Cobeljic, head of derivatives trading at AMINA Bank, highlighted ETF flows and corporate Bitcoin purchases as important indicators of institutional interest. Continued withdrawals could make it more difficult for Bitcoin and Ethereum to recover while broader market conditions remain uncertain.
Ethereum has been particularly weak during the latest decline. On November 6, its price drop triggered approximately $210 million in liquidations, including around $179 million in leveraged long positions. Many traders who were betting on higher prices were forced out of their positions as Ethereum moved toward $2,200. The cryptocurrency has since fallen below that level, increasing concerns among investors.
The pressure on cryptocurrencies has also coincided with losses in the US stock market, particularly among technology and artificial intelligence companies. Investors have started questioning whether the high valuations of some AI-related businesses can be supported by their future earnings, especially as companies continue spending heavily on infrastructure and development.
Economic data from the United States has created additional uncertainty. Stronger-than-expected employment figures have raised expectations that the Federal Reserve could increase interest rates again in December. Market pricing has indicated a probability approaching 80% for another rate hike, although this remains subject to incoming economic data and changes in market expectations.
Expectations of higher interest rates can put pressure on cryptocurrencies because investors may become less willing to take risks when traditional financial assets offer more attractive returns. The US dollar also strengthened following the employment report, adding another challenge for Bitcoin and other digital assets.
Meanwhile, investors are waiting for upcoming US inflation figures to get a clearer picture of the Federal Reserve’s next move. Asian stock markets and US stock futures managed to recover some of their losses on Monday, but Bitcoin and Ethereum continued to face selling pressure.
Overall, the latest decline reflects several concerns hitting the cryptocurrency market at the same time. Uncertainty surrounding US regulations, the Binance security breach, large ETF withdrawals, and changing expectations for Federal Reserve interest rates have all affected investor confidence. Traders are now watching whether Bitcoin can recover above $75,000 and whether Ethereum can regain the $2,200 level as the market looks for signs of stability.