Bitcoin Price Drops Below $50,000, Heads for a Losing Week

10 Dec 2021 · 3rd Party Analysis

Bitcoin Price Drops Below $50,000, Heads for a Losing Week

WRITTEN BY ThorFX

In Summary:

  • Bitcoin is looking to post its fourth week in the red as price slips below $50,000 per coin
  • Ether dives about 7% on Thursday to float near $4,100 as crypto markets pull back

What’s Trading in Crypto Markets?

A broader crypto market pullback pressured major tokens on Thursday as traders took some risk off the table. This said, the price of bitcoin, the world’s biggest token, slipped about 5.5% on the day to hit a session low of $47,700 per token.

Also, Ether, the second most valuable cryptocurrency, tumbled over 7% to reach a bottom of $4,100 apiece. As the decline was widespread, the whole crypto space posted a day in the red, with major tokens losing between 5% and 10%.

In more detail, yesterday’s drop in bitcoin ended a four-day winning streak. Moreover, it pushed bitcoin into negative territory for the week. On this note, the orange coin opened for trading this week with a price of about $49,100 per coin.

Presently, the leading crypto asset is gravitating towards $48,500 as traders took a defensive stance near the end of the week. Ether, on the other hand, is hovering near $4,100 per token, fairly flat early Friday morning.

Dive Deeper in the Financial World

Stocks, currencies, and commodities today are floating relatively unchanged as investors maintain a quiet trading session. In that context, stock futures in the US were flat early on Friday after Wall Street finished Thursday’s session in the red.

More precisely, the tech-heavy Nasdaq Composite was the biggest decliner of the day. It lost more than 1.7% as tech stocks turned sharply lower. Tesla shares, for example, tumbled over 6%. Also, Netflix lost 2.7%.

In addition, the broad-based S&P500 dropped roughly half a percent. In contrast, the 30-stock Dow Jones Industrial Average swung around the flatline and finished virtually flat on the day.

Stocks turned lower despite a strong jobless claims reading. Specifically, first-time filings for unemployment benefits last week hit a 52-year low. In the week ended Dec. 4, initial jobless claims hit 184,000, the lowest since 1969.

What to Expect in the Markets?

Meanwhile, financial markets are in for increased volatility ahead as the US is about to release its inflation report. With this in mind, the consumer price index will highlight if inflation continues to climb for another month.

Expectations for the November inflation report are mixed as some analysts point to further increase in consumer prices. To this end, October’s inflation in the US surged by a 6.2% increase on an annualized basis. In other words, this was the largest 12-month increase since November 1990.

To this end, the release of the inflation report is expected to increase the volatility in forex markets, and the US dollar in particular.

Economic News Today (EST time)

The US consumer price index report (Core CPI) for the month of November is slated to arrive at 08:30 am.

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