Bitcoin continues to remain below $75,000 following last week's losses. The world's largest cryptocurrency is currently priced at $74,765 in recent trading.
The recovery on Wall Street, which bolstered risk appetite in global markets, and the decline in oil prices have created a positive backdrop for crypto assets. However, the expectation that oversight of the cryptocurrency sector in the US could tighten has been among the main factors putting pressure on prices.
In the previous week's market sell-off, concerns that stricter rules could be introduced in the technology and crypto asset sectors after Democrats secured a majority in both chambers of the US Congress had an impact. Specifically, expectations that anti-money laundering and risk management standards could be enforced more strictly are being monitored.
The expected appointment of Democratic Senatör Elizabeth Warren, known for her criticism of cryptocurrencies, to head the Senate Banking Committee is also increasing uncertainty regarding the new era for the sector. The fact that cryptocurrency regulations adopted over the last two years have largely progressed with Republican support keeps the question of how steps in favor of the sector will take shape from now on at the forefront.
DECLINE IN OIL AND STRATEGY PURCHASE PROVIDED SUPPORT
The decline in oil prices was welcomed by the markets in terms of inflation and risk perception. Brent crude oil futures fell 5.1% to close at $92.61 per barrel. US President Donald Trump's statements regarding Iran were influential in the decline.
In an interview with CNN, Trump said that the possibility of a new military operation against Iran is quite low if progress is made in diplomatic talks. In response to a question on CBS's "60 Minutes" program about whether he would escalate the war after the midterm elections, he replied, "I have no such intention. I don't think there is any reason for that."
On the corporate side, the new purchase by Strategy, known as the company holding the most Bitcoin, was one of the supporting factors in the market. The company announced that it purchased 1,036 Bitcoins for $81.9 million between November 2 and November 8. The average cost per Bitcoin for the purchases was recorded at $79,012.
However, a weak outlook was noted in terms of fund flows. According to SoSoValue data, spot Bitcoin ETFs recorded their highest weekly outflows since June last week.
A mixed picture was observed in the altcoin market. While Ether rose 0.2% to $2,131.67, Solana gained 0.2%, BNB 0.7%, and Cardano 1.3%. Dogecoin rose 1.4%, while XRP fell 0.9% and TRUMP fell 1.8%.
News Source: 12punto
