Bitcoin Price Slides Near $58,000 as Traders Buy the Dip
17 Nov 2021 · 3rd Party Analysis
- Bitcoin price eases further, prompting traders to buy the dip near $58,000
- A broader crypto market decline has defined the first three days of the week
What’s Trading in the Markets?
Cryptocurrencies fell early on Wednesday, extending their decline from the past couple of days. After a quiet weekend of sideways trading, major tokens entered into a gloomy market environment this week. In more detail, since the start of the week, leading cryptocurrencies are down 15% or more.
Bitcoin, the world’s most popular cryptocurrency, has lost more than 15% since Monday. Its price slipped to a November low of $58,350 a coin. However, the decline prompted many buyers to step in and buy the dip. In other words, bitcoin bulls took the chance to enter the market at a 15% discount on bitcoin’s price.
Ether, on the other hand, is also trading more than 15% to the downside today. The second-biggest cryptocurrency slipped from its record high set last Wednesday, similarly to bitcoin.
Dive Deeper in the Cryptocurrency World
This said, the current market selloff comes after a strong rally for bitcoin and alternative coins earlier this month. More precisely, increased buying momentum propelled the orange coin’s price to a record of $69,000 last week.
Furthermore, what underpinned the upside swing was the launch of several Bitcoin exchange-traded funds near the end of October. Specifically, the launch of the ProShares Bitcoin ETF and the Valkyrie Bitcoin ETF signaled the increasing popularity of Bitcoin products on Wall Street.
With this in mind, mainstream adoption of crypto continues to grow. The latest sign of growth is the trading debut of the third Bitcoin-focused ETF to land on the stock market. The VanEck Bitcoin futures fund joined the traditional markets on Tuesday.
Elsewhere in the Financial Markets
In the meantime, stocks and pairs are going through increased volatility amid a flurry of market events. Wall Street stocks, for example, edged higher on Tuesday while futures today remain fairly flat.
Investors added more fuel to their risky bets on stocks after a consumer-spending report sparked optimism for the holiday sales season.
Despite inflation concerns, US retail sales rose 1.7% in October, the Commerce Department said. The report measures sales at retail stores, online merchants, and restaurants. The elevated spending level suggested consumers are keeping up with the growing prices as the economy rebounds.
As a result of the positive trend, the US dollar extended its gains across the forex market. The EUR/USD pair, for example, tumbled to levels below 1.1300, the lowest in more than 16 months. The USD/JPY, on the other hand, accelerated to 115.00, the highest since March 2017.
Economic News Today (EST time)
Heading into the day, traders and investors will be watching for fresh inflation data from the UK, Europe, and Canada. The consumer-price data for October will show whether inflation has eased, as most central bankers expect. Some analysts, however, point higher prices would not be transitory.
The UK CPI report will arrive at 02:00 am. Next, Europe’s CPI data is released at 05:00 am. Later, Canada will reveal its own inflation data at 08:30 am. All three events could increase the volatility in the currency market.