Bitcoin Falls to $74,584 Amid Binance Theft and ETF Outflows

Bitcoin traded at $74,584 on November 9, down 1.4% over 24 hours, as investors weighed a reported $6.34 billion October 29 theft from Binance that the FBI attributed to North Korean-linked hackers. Ethereum fell 4.4% to $2,137, putting both assets at their lowest levels since August during late Sunday trading. Bitcoin was down 4.9% for the week, while Ethereum lost 7.4%.

Volume stayed substantial despite the losses. Bitcoin recorded nearly $21 billion in daily volume, compared with approximately $10.5 billion for Ethereum, as investors assessed US regulatory risk, exchange security and institutional withdrawals.

What changed after the US midterms?

The Democratic Party won both chambers of Congress in the previous week’s US midterm elections. The result raised concerns that lawmakers could pursue stricter cryptocurrency regulations and slow industry-backed legislation intended to establish clearer rules for digital assets.

The cryptocurrency industry spent more than $300 million supporting crypto-friendly candidates from both major parties across the current and previous election cycles. President Donald Trump’s administration has pursued lighter enforcement, a strategic Bitcoin reserve and expanded access to crypto-related financial products.

The election complicated that political environment. Democrats are discussing changes to cryptocurrency market-structure legislation and stronger investor protections; crypto.news previously reported that Democratic lawmakers also discussed expanding Securities and Exchange Commission oversight.

How large was the Binance breach?

The October 29 security breach at Binance resulted in the theft of approximately $6.34 billion in cryptocurrency. The incident ranks among the largest financial thefts ever reported and has raised concerns about exchange security and the custody of digital assets.

Binance said it would cover customer losses and later reopened withdrawals after temporarily suspending them. Customers then withdrew a net $4.72 billion after services resumed, equivalent to approximately 2.8% of the assets held on the platform.

The FBI attributed the attack to North Korean-linked hackers, while Binance said it was working with industry partners to trace and freeze stolen assets. Santiment reported that approximately 28,316 BTC left Binance-associated wallets through November 5.

Santiment also found that Bitcoin’s social sentiment deteriorated after the breach, with only 0.37 positive comments for every negative comment. The reading marked a substantial deterioration in investor tone following the security event.

What do ETF flows and liquidations show?

US-listed spot Bitcoin and Ethereum exchange-traded funds recorded combined net outflows of $530.1 million on November 5, according to fund-flow data. Bitcoin ETFs accounted for $430.2 million of those withdrawals, while Ethereum funds lost $99.9 million.

Andreja Cobeljic, head of derivatives trading at AMINA Bank, identified ETF flows and corporate Bitcoin purchases as “important indicators of institutional demand.” The outflows added selling pressure as Bitcoin and Ethereum moved toward their August lows.

Ethereum’s November 6 decline triggered approximately $210 million in liquidations as the price approached $2,200. Leveraged long positions accounted for $179 million of that total; Ethereum subsequently dropped below $2,200, while Bitcoin remained closer to its recent trading range.

Why did macro conditions matter?

The decline coincided with heavy selling in US technology stocks, particularly companies associated with artificial intelligence. Investors focused on elevated AI valuations and the returns companies can generate from substantial infrastructure spending.

Stronger-than-expected US employment data complicated the outlook for financial markets. The data raised expectations for another Federal Reserve interest-rate increase in December, with market pricing indicating a probability approaching 80%.

The US dollar strengthened following the employment report, while investors turned to upcoming inflation figures for indications about the central bank’s next decision. Asian equities and US stock futures recovered some ground on Monday, but Bitcoin and Ethereum remained under pressure after their weekend declines.

The next inflation figures and the Federal Reserve’s December decision provide the next dated test for crypto liquidity, while post-midterm work on market-structure legislation or SEC oversight could reset the regulatory path.