Investing.com– Bitcoin dipped on Monday, extending a steep downturn from last week as a souring regulatory outlook for U.S. markets, following a Democratic sweep of Congress, dampened appetite for cryptocurrencies.
This saw spot exchange-traded funds suffer heavy outflows last week, pointing to a layer of institutional selling.
Bitcoin fell 2.4% to $74,112.2 by 05:44 ET (10:44 GMT). The world’s largest crypto fell 2% in the past week as initial cheer over the Democrat victory gave way to more questions over the regulatory outlook.
Bitcoin’s losses– which headlined a broader decline in crypto– were spurred chiefly by fears of increased regulatory oversight under a Democrat-led Congress.
Several Democrats have already expressed skepticism towards crypto, and have called for tighter anti-money laundering and risk management rules in the industry.
Senator Elizabeth Warren– who has been one of the loudest anti-crypto voices among Senate Democrats– is now pipped to lead the powerful Senate Banking Committee, giving her expansive authority over the financial industry.
Such an appointment could herald more scrutiny towards crypto.
The Democrats’ Congress win also drove questions over more pro-crypto legislation, given that the crypto acts passed over the past two years were largely Republican-backed.
Bitcoin ETFs suffer deep outflows on Democrat win
Spot Bitcoin ETFs suffered their worst weekly outflows since June last week, as institutional investors sold in the face of increased regulatory scrutiny.
Spot ETFs suffered a $1.28 billion outflow last week, its second straight week of outflows and its worst since late-June, data from SoSoValue showed.
The outflows saw crypto largely duck a rebound in broader financial markets, specifically technology stocks.
Crypto price today: altcoins extend losses
Broader crypto prices fell across the board, extending declines from last week.
World no.2 crypto Ether fell 5.8% to $2,106.0, while XRP slid 6.4% and was on the cusp of falling below $1.
Solana and Cardano fell 3.6% and 2.4%, respectively, while BNB fell 2.5%.
Among memecoins, Dogecoin fell 3%, while $TRUMP also fell about 3% but remained above record lows hit last week.
Vahid Karaahmetovic contributed to this report.
Original Article
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