Bitcoin entered the week of the United States midterm elections under pressure, with Wall Street withdrawing funds and traders positioning for further declines. The cryptocurrency briefly fell below $77,000 on October 30 before climbing back above $78,000 on the following Monday. Ethereum showed a similar bounce, moving from $2,200 to around $2,287.
ETF Flows Turn Negative
Weekly flows for US spot Bitcoin ETFs reversed from a $301.2 million inflow to a $202.4 million outflow, while Ethereum ETF outflows widened from $220.7 million to $431.4 million. On October 30, Bitcoin ETFs lost $643.2 million, erasing inflows recorded over the prior four trading sessions. The week ended with approximately $202 million in net withdrawals from Bitcoin ETFs and $431.4 million in net withdrawals from Ethereum funds over five consecutive days.
Institutional Activity and On‑Chain Metrics
Institutional investors removed a net $515 million from US Bitcoin ETFs in October 2026. At the same time, Bitcoin’s estimated on‑chain average cost basis rose to $74,800, leaving a narrow margin between recent prices and the average purchase price.
Leverage and Market Sentiment
Bitunix analysts reported a $201 million leveraged short position on Bitcoin on the Hyperliquid platform as of October 29, indicating a bearish stance among large traders ahead of the election week.
Regulatory Outlook
The upcoming midterm elections will decide control of Congress and could affect the future of the CLARITY Act, a proposed framework for cryptocurrency regulation. The bill did not advance in the Senate in September, and its prospects may shift depending on the election outcome.
Impact of Recent Binance Hack
Following a record $6.3 billion hack of the Binance exchange, customers withdrew a net $3.64 billion. Binance reported that withdrawals are stabilizing and that approximately 95 % of the stolen assets have been replaced using company resources.
Market Performance in October
Only two of the top twenty cryptocurrencies ended October in positive territory: Monero (+9.99 %) and LEO (+4.07 %). Bitcoin fell 7.30 % and Ethereum declined 16.04 % over the month.
Key Question Ahead of the Vote
The immediate challenge for Bitcoin is whether it can regain the $80,000 level and attract fresh ETF inflows. A sustained drop below $77,000 could refocus attention on the $74,800 cost‑basis region. With election results pending and institutional money exiting, the market awaits signs of renewed buying interest.
