CoinDesk
Bitcoin traded around $76,900 after dipping to about $76,300, up 0.2% since midnight UTC. U.S. spot Bitcoin ETFs recorded $399 million in outflows for a second straight day, with BlackRock’s IBIT shedding $405 million, its largest daily outflow since June. Binance customers had withdrawn a net $4.72 billion since the exchange reopened Sunday, while an estimated $40 million was drained from Mercado Bitcoin hot wallets in Brazil.
Why it matters
The price uptick sits against several signs of caution: crypto futures volume rose 51% in 24 hours to $168.1 billion while open interest fell 1.63% to $134.9 billion, a pattern pointing to trading churn rather than fresh positioning. Liquidations jumped 171% to $382.6 million, and market orders leaned toward selling. U.S. midterm elections were adding a near-term event risk, with early results and media calls expected the following day.
Short-dated options also priced in larger swings. Implied volatility on the nearest-dated Bitcoin options rose to about 51%, from roughly 43.5% for the Nov. 4 expiry, while near-term downside protection remained more expensive than longer-dated protection. Ether options showed similar elevated volatility, and all six of the most traded ETH options were puts.
Market impact
Bitcoin’s modest gain contrasted with ETF outflows and negative Bitcoin cumulative volume delta, which indicates market-order selling outweighed buying. Ether gained 0.6%, while the altcoin market was mixed; Zcash was among the weakest performers in futures data. Nasdaq futures rose 0.3% and Brent crude gained 1.3% to around $106, while AMD earnings and Friday’s U.S. jobs report were also on the near-term calendar.
Frequently asked questions
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What drove concern despite Bitcoin’s slight price gain?
Spot Bitcoin ETFs recorded $399 million in outflows for a second straight day, Binance withdrawals reached $4.72 billion, and derivatives indicators showed selling pressure.
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What did rising futures volume alongside falling open interest indicate?
Futures volume rose 51% while open interest fell 1.63%. The report characterized this combination as trading churn rather than fresh positional betting.
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How did short-dated Bitcoin options reflect election uncertainty?
Implied volatility on the nearest-dated Bitcoin options rose to about 51%, from roughly 43.5% for the Nov. 4 expiry. Near-term downside protection remained more expensive than longer-dated protection.
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How much was reportedly drained from Mercado Bitcoin hot wallets?
An estimated $40 million was drained from hot wallets at Brazil’s Mercado Bitcoin in a new attack.
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What other U.S. events were on traders’ calendars?
The U.S. midterm elections were underway, AMD was due to report after the close, and the U.S. jobs report was due Friday.
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