Bitcoin Falls 2% Below $77,000 as Chip Stocks Extend Losses
Key Facts
Bitcoin fell 2% to just below $77,000 during Asian morning trading on Tuesday, according to a CoinDesk report, slipping back below the low of about $77,600 hit late Sunday and erasing the previous session’s rebound. The move came as losses widened among U.S. chipmakers and Asian markets declined, while the United States was holding its midterm elections. The retreat spread to major and alternative cryptocurrencies, alongside pressure on spot Bitcoin funds and large withdrawals from Binance. Attention also focused on the first election results, expected as Asian markets opened on Wednesday, according to CoinDesk. In the same session, EL7’s daily data showed a close at $77,388.01 on November 3, after a close at $76,816 on November 2.
Tuesday’s decline erased Bitcoin’s recovery from the level it touched late Sunday, near $77,600, according to CoinDesk. Pressure was not limited to the largest cryptocurrency: ZEC fell about 10% to around $1,140, the biggest loss among the currencies mentioned in the report. HYPE dropped 5% to around $84, and SOL fell 3% to around $92. BNB also lost about 2%, falling below $700, while Ether and DOGE each declined about 2%. These moves came amid broader weakness in technology-related and risk assets.
The selloff extended to chipmakers and U.S. stocks, with the U.S. chipmaker gauge falling 12% over three days, according to CoinDesk. The Nasdaq 100 was down 10% from its peak, while the S&P 500 fell 0.5%. In Asia, South Korea’s Kospi dropped more than 3% and the MSCI Asia-Pacific index fell about 1%, while Japanese markets remained closed for a holiday. The moves reflect the breadth of pressure accompanying the cryptocurrency decline in the session, from technology stocks to regional markets. In the previous Monday session, the S&P 500 erased morning gains of 1.1% to finish the day down 0.5%, while the Nasdaq Composite fell 1.1%, according to The Associated Press.
Fund flows added to signs of caution ahead of Tuesday’s session: U.S. spot Bitcoin funds recorded net outflows of $643 million on Friday, October 30, their largest daily outflow since June, according to CoinDesk. The outflows erased four consecutive days of inflows. In a parallel development, Binance began gradually resuming withdrawals on Sunday and said it had processed $4.65 billion in withdrawals against $1.01 billion in deposits. That resulted in a net outflow of $3.64 billion through the November 2 report. The platform said it had covered about 95% of the $6.3 billion stolen, a figure cited by CoinDesk in its report on the withdrawals.
Binance said on October 29 that the incident’s estimated total impact was about $6.3 billion and that it had frozen about $3 billion in affected on-chain assets, according to an Associated Press report published at the time. The agency quoted the platform as saying its initial investigation pointed to the possible involvement of a compromised laptop belonging to a DevOps engineer, which enabled an attacker to access a service container and send unauthorized withdrawal transactions. Binance added that it had found no evidence that private wallet keys were leaked. This context puts the withdrawals following the resumption of service alongside fund outflows, as the currency fell in tandem with technology stocks. Portfolio manager Joe Tigay, commenting on the selloff in AI stocks in remarks reported by The Associated Press, said the market was moving from “the hopes and dreams phase of AI trading to the show-me-the-results phase.”
Trading coincided with the U.S. midterm elections, and CoinDesk expected preliminary results to arrive as Asian markets opened on Wednesday. Nearby economic catalysts included the September JOLTS report, which was scheduled for release on November 3, 2026, at 10:00 a.m. Eastern time, according to the U.S. Bureau of Labor Statistics. The report presents indicators on job openings, hires and separations, the bureau said. The Associated Press reported that JOLTS data include job openings and layoffs in sectors including health care, retail and manufacturing. The Federal Reserve had also scheduled the release of minutes from the Federal Open Market Committee meeting held on October 27 and 28 for November 18 at 2:00 p.m.