Bitcoin Drops to a One-Month Low as Crypto Markets Extend Decline

19 Nov 2021 · 3rd Party Analysis

Bitcoin Drops to a One-Month Low as Crypto Markets Extend Decline


In Summary:

  • Losses for bitcoin accelerate Friday as the token erases about 3% to reach $55,500
  • The wider crypto market pulls back as investors retreat amid lack of fresh news

What’s Trading in the Markets?

Bitcoin, the world’s biggest cryptocurrency, continued to move lower Thursday and early Friday. In detail, the orange coin slipped to a monthly low of $55,500 per coin, a level last seen on Oct. 13. The price of bitcoin has been in a downward spiral over the past six straight days.

During that period, bitcoin has lost about 15% of its value as the market capitalization has scaled down to roughly $1 trillion. Previously, when bitcoin peaked at $69,000 per coin on Nov. 10, it was worth more than $1.3 trillion. Some analysts point the recent slump is due to the lack of fresh news to stir the crypto space.

Moreover, as the buying momentum has faded, the broader crypto market has also retreated farther from its recent record highs. In numbers, the valuation of all cryptocurrencies has dropped to $2.5 trillion from a record of $3 trillion reached 10 days ago.

Despite major tokens losing about 15% to 20% of their valuation in several days, crypto backers have not lost faith. They continue to believe the crypto market remains poised to continue grinding higher and setting new records.

Dive Deeper in the Financial World

In the broader financial markets, stocks in the US staged a recovery on Thursday. More specifically, the S&P500 and the Nasdaq Composite were boosted to new record highs despite inflation concerns and looming uncertainty.

This said, the broad-based S&P500 added 0.3% to set a fresh all-time high of 4,704.54. The Nasdaq Composite, on the other hand, gained 0.4% to settle at a closing record of 15,993.71.

The Dow Jones Industrial Average, meanwhile, lagged behind its peers as the 30-stock index lost 0.2% to close at 35,870.95.

In individual stocks, technology heavyweights helped the overall market sentiment on Thursday. Amazon, for example, rallied 4.1%, while Apple added 2.9%. Electric-car maker Tesla gained 0.7% on the day.

What to Expect in the Markets?

US stock futures today remain positive with the three major indexes poised to open higher by 0.3% or more.

Forex markets, in the meantime, are offering chances for traders to enter the market as several pairs are at inflection points. The AUD/USD, for example, is trading near a six-week low at 0.7270. In addition, the EUR/CHF has dropped to an 18-month low as the pair floats near 1.0510.

Also, the EUR/GBP pair this week set a 21-month low as UK inflation spiked to a 10-year high hitting 4.2% in October. As a result, the exchange rate slipped to 0.8400, a level last seen in February 2020. On this note, traders will be watching the pair as buyers may be looking to enter at the current multi-year bottom.

Economic News Today (EST time)

On Friday, the market will be following Canada’s core retail sales report for September scheduled for 08:30 am. Later, at 01:00 pm, European Central Bank President Christine Lagarde will have a speech. Both events could increase the volatility in currencies and commodities.

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