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Bitcoin recovers to near $49,000 after weekend plunge

By Mensholong Lepcha

01:53, 6 December 2021

Illustration of cryptocurrencies
Illustration of cryptocurrencies – Photo: Shutterstock

Bitcoin traded close to $49,000 in early Asia trade on Monday after cryptocurrencies plunged during the weekend.

The weekend’s drop saw Bitcoin take its seven-day losses to over 15% compared to over 4% for the number two cryptocurrency, Ether.

Bitcoin prices dropped to an intraday low of $42,333 on Saturday. By Monday, the bellwether cryptocurrency was trading 0.6% lower over the past 24-hours at about 48,811 in early Asia trade.

El Salvador buys the dip

El Salvador President Nayib Bukele tweeted on Saturday that the Central American nation “just bought the dip!” with a purchase of 150 bitcoins at an average price of $48,670.

“Risk assets like stocks & #Bitcoin are tanking simply because Powell hinted the #Fed might wrap up the taper a couple of months early and the first 1/4 point rate hike may also come a bit sooner. Imagine what would happen if the Fed was actually serious about fighting #inflation!,” tweeted Peter Schiff, chief economist and global strategist at investment firm Euro Pacific Capital.

“I’m in #Miami for a few days for #ArtBasel. The fact that #Bitcoin and the #crypto industry are so well-represented here is another classic warning sign of a major market top. It’s reminiscent of the heydays of the dot com and subprime mortgage bubbles, only far more flamboyant,” Schiff warned in a separate tweet.

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ETH/USD

3,205.25 Price
+1.140% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

XRP/USD

0.53 Price
-3.890% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

BTC/USD

60,182.40 Price
+2.580% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

DOGE/USD

0.11 Price
+1.790% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

Ether futures contract volume up in November

On Monday, Ether inched 1.3% higher to $4,157.39 in early Asia trade.

Data from CryptoCompare showed Bitcoin’s monthly futures contracts dropped 30.5% in November from a month ago. In contrast, Ethereum futures contract jumped 11.6% over the previous month in November.

Blockchain networks Solana’s SOL took its seven-day losses to 5.2% to trade at $192.34, Cardano’s ADA fell 14.7% over the last seven days to $1.36 and Polkadot’s DOT took its weekly losses to 26% to trade at $26.9 in early Asia trade on Monday.

MATIC takes seven-day gains to over 15%

Meme coins Dogecoin and Shiba Inu were down 19.8% and 13.2%, respectively, over the week.

Polygon’s MATIC, which has seen a surge in prices recently, bucked the trend to take its weekly gains to 15.5% to $1.92, as of Monday morning.

Read more : Major barriers exist to tokenising the private loan sector

Markets in this article

BTC/USD
Bitcoin / USD
60182.40 USD
1511.2 +2.580%
ADA/USD
Cardano / USD
0.43244 USD
-0.00655 -1.500%
ADA/USD
Cardano / USD
0.43244 USD
-0.00655 -1.500%
DOGE/USD
DogeCoin / USD
0.1145324 USD
0.0019952 +1.790%
DOT/USD
Polkadot / USD
6.2645 USD
-0.0452 -0.720%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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