Bitcoin traded around $78,000 during Monday’s Asian trading session after falling to a six-week low last week.
The largest cryptocurrency had partially recovered from Friday’s decline as Binance began restoring withdrawal services after purchasing replacements for approximately 95% of the stolen assets.
Ethereum also recovered modestly, trading near $2,280, while BNB trades near $705.
Concerns about exchange security and investor withdrawals continue to loom over the crypto industry.
Important Read: Binance reports $3.64 billion in net outflows after reopening withdrawals
ETF outflows show the selloff’s scale
U.S. spot Bitcoin exchange-traded funds (ETFs) lost more than $643 million on Friday, their largest daily outflow in October, according to Farside Investors data.
More than $1.3 billion in leveraged crypto positions were liquidated during the broader market disruption, Reuters reported.
Liquidation happens when exchanges forcibly close leveraged trades as traders cannot meet collateral requirements.
Rates and U.S. elections remain in focus
Asian equity benchmarks advanced on Monday, while S&P 500 and Nasdaq 100 futures gained at least 0.4%, CoinDesk reported.
However, the Federal Reserve’s interest-rate outlook remains uncertain, while U.S. technology stocks are recovering from a difficult October.
We believe that given last week’s Fed commentary, macro pressures will continue to keep interest rates high, which will weigh on liquidity for Bitcoin and other cryptocurrencies over the next few months, Jeff Mei, chief operating officer at crypto exchange BTSE, told CoinDesk.
He argued that technology stocks and Tuesday’s U.S. midterm elections were key events to watch.
Additionally, US midterm elections this week are likely to have a major impact on markets. While the Democrats are against the CLARITY act, their party winning a majority in Congress could force the Iran conflict to an earlier end, lowering oil prices and inflationary pressures, causing stocks and crypto to rebound, said Mei.
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