Crypto markets plunge: Bitcoin, Ethereum hit new lows
6.8 Markets Bitcoin and Ethereum hit two-month lows after the US midterms, driven by regulatory fears, a Binance breach, and market volatility. Investor sentiment turned to fear, accelerating the sell-off.
Cryptocurrency markets faced a significant downturn, with Bitcoin and Ethereum dropping to their lowest levels in over two months. Bitcoin declined more than 2% to $73,708, while Ethereum fell about 5% to $2,223. This sharp decline followed the US midterm elections, which raised concerns that a Democratic-controlled Congress could impose stricter regulations on digital assets. Additional pressure came from a $6 billion security breach at Binance and the election of prominent cryptocurrency critics. Market volatility remained elevated, with investor sentiment shifting to fear, as reflected by the Crypto Fear and Greed Index falling to 29. Other contributing factors included an internal investigation at Nvidia and stalled US-Iran negotiations, which raised concerns about global oil prices and further dampened risk appetite in the crypto sector.
