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Bitcoin slides under $56,000 as crypto retreat continues

By Aaron Woolner

03:34, 19 November 2021

Bitcoin with technological golden background
Bitcoin with technological golden background - Photo: Shutterstock

Bellwether digital currency bitcoins saw its price go under $56,000 in early Asian trade as all the top 10 tokens by market capitalisation saw their prices fall. 

Data from Capital.com show that BTC was trading at $55,950 in mid-morning Asia trade, a near 6% deadline on the day, while the second largest coin by market cap, ether, was down 5% at just under $4,000. 

Other top 10 tokens such as XRP and cardano had fallen 6.2% and 4.3% in what one crypto analyst Rekt Capital said on Twitter was a result of widespread seller exhaustion. 

Bitcoin well back from record high

Eleventh ranked digital currency Shiba also had a poor day with Capital.com data showing it down 11.6%. 

Bitcoin has now retreated well below its record recent high and there appears to be a number of factors.

BTC/USD

64,429.75 Price
-0.680% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

BCH/USD

477.65 Price
-0.880% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

DOGE/USD

0.15 Price
-1.510% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

ETH/USD

3,142.61 Price
-1.180% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

On Wednesday, Twitter's CFO Ned Segal said that carrying cryptocurrency in the firm's treasury did not “make sense right now”. The social media executive indicated the firm was looking at more stable assets to manage its cash flows. 

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US crypto tax reporting 

While on Tuesday all the top 10 coins fell back after US President Joe Biden signed a $1trn infrastructure bill containing a cryptocurrency tax reporting requirement, as part of an infrastructure bill.

The long-term outlook for digital currencies, however, looks brighter with Asian institutional investors particularly keen on the asset class, according to a survey published earlier this week by Fidelity Digital Assets (FDA).

“The increased interest and adoption we’re seeing is a reflection of the growing sophistication and institutionalization of the digital assets ecosystem,” Tom Jessop, president of FDA said in the report.

Read more: ConstitutionDAO falls short as US Constitution sells for m

Markets in this article

BTC/USD
Bitcoin / USD
64429.75 USD
-439.1 -0.680%
ADA/USD
Cardano / USD
0.47528 USD
-0.00417 -0.880%
ADA/USD
Cardano / USD
0.47528 USD
-0.00417 -0.880%
ADA/USD
Cardano / USD
0.47528 USD
-0.00417 -0.880%
SHIB/USD
Shiba Inu / USD
0.00002617 USD
-0.00000071 -2.710%

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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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