On Tuesday, Bitcoin trading activity was fairly low, as investors remain uncertain about the policies U.S. regulators will adopt. The situation was exacerbated by the fact that Democrats now hold a majority in Congress, which has triggered a steady outflow of funds from spot ETFs.
Traders are also acting cautiously. Everyone is waiting for the latest U.S. inflation data, as higher interest rates would add to market uncertainty. As of 08:35 Moscow time, the Bitcoin price had risen slightly by 0.4% to $74,749.1.
The world’s leading cryptocurrency saw a significant drop in price following the Democrats’ victory in last weekend’s midterm elections, although prices recovered slightly earlier this week. However, Bitcoin’s gains are being held back by substantial outflows from U.S. ETFs. This trend has continued this week, even though more than $1.2 billion was withdrawn from the funds last week. According to SoSoValue, $201 million flowed out of Bitcoin ETFs on Monday alone.
Market sentiment has turned more pessimistic due to legal uncertainty in the U.S. The Democratic Party typically advocates for tighter regulation of cryptocurrencies. Furthermore, there is a possibility that Senator Elizabeth Warren, who has consistently criticized digital assets, will chair the influential Senate Banking Committee. If this happens, regulation of the industry could tighten significantly.
As for other cryptocurrencies, altcoins have so far remained on hold, awaiting the U.S. Consumer Price Index (CPI) report. Overall, prices on Tuesday remained virtually unchanged after a sharp drop in previous weeks. Investors are simply biding their time. If inflation data comes in high, the Fed may raise rates again, which is always bad for risky assets like cryptocurrencies. October CPI figures are expected to show an increase in both the headline and core indices.
Looking at specific coins, Ether fell 0.2% to $2,125.42, while XRP rose 0.7%. Solana fell by 0.4%, while Cardano rose by 2.4% and BNB gained 1.4%. In the world of meme coins, Dogecoin rose 2%, while $TRUMP lost 1.8%, settling near its all-time lows.