The price of Bitcoin (BTC) has decreased by about 4 percent in the past 24 hours and is trading around $69,532 on Friday, November 1, during the first trading session in Europe. After hinting at a bullish rally towards an all-time high earlier this week, this leading cryptocurrency closed the month of October at around $70,000, lower than the monthly closing high of about $71,297.
The altcoin market led by Ethereum (ETH) is also following a similar correction pattern, leading to a 5.2 percent drop in total cryptocurrency market capitalization. Due to increased cryptocurrency volatility, nearly $300 million was liquidated from the cryptocurrency market, with about $247 million related to long-term traders.
Key factors affecting Bitcoin price action today
Notable sell-off from US spot BTC ETFs
The price of Bitcoin has lacked upward momentum over the past 24 hours as most companies issuing US spot BTC ETFs have reported significant outflows. Except for BlackRock's IBIT, which reported about $318 million, the rest of the top five spot BTC ETF issuers saw significant outflows on Thursday.
Specifically, ARKB reported an outflow of $94 million, and Fidelity's FBTC and Bitwise BITB both recorded outflows of $75 million on Thursday. As a result, US spot BTC ETFs recorded a net inflow of about $32 million, after seeing nearly $2 billion in the two days prior.
End of month options expiration
The price of Bitcoin reacts to $2 billion worth of options expiring on Friday, although smaller than last month. According to market data provided by Coinglass, the volume of options on the Deribit exchange is about $1.96 billion in the past 24 hours.
Earlier this week, Joshua Lim, the derivatives product director at Arbelos Markets, noted that CME Bitcoin options experienced the largest volume just a few days before the US elections. Meanwhile, Open Interest (OI) surged to $1.3 billion, with a strike price of $80,000 on the Deribit exchange.
Uncertainty from impactful events
The price of Bitcoin has steadily grown over the past few weeks due to high demand from institutional investors. However, uncertainty from impactful news in the short term has discouraged some investors amid expectations of increased volatility.
As a result, many investors have accelerated profit-taking, dampening optimistic sentiment.
For example, the cryptocurrency market is anticipating Republican presidential candidate Donald Trump to win the 2024 election. Additionally, Wall Street analysts expect the Fed to start cutting interest rates next week.
Developing short-term bearish technical outlook
According to cryptocurrency analyst Ali Martinez, the price of Bitcoin has faced significant resistance above $73,000, therefore a short correction is expected to refresh bullish sentiment. From a technical analysis perspective, the price of Bitcoin is expected to find strong support above $69,000, which will create the next price rally to $78,000 in the near future.
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