Market Shakes Out Leverage

GB Market Commentary 16/11/2021

by Jonas Luethy

Bitcoin saw a major retracement late last night and early this morning, as the coin fell 8% from Mondays local high of $66’000 to just over $60’000 now. Some analysts are suggesting that the dip is a “classic” leverage shakeout as funding levels are down to more balanced levels. Others are suggesting that bitcoin will drop more, as analysts suggest a more desirable entry for bitcoin sits closer to $50000. Altcoins were hit hard too, with some recording losses in excess of 10%. ETH is trading at $4300, down from this week’s high of $4770. Bitcoin dominance in the market is at 43% and the total crypto market cap is 2.6T.

Finally, regulators are looking more and more at crypto, as Joe Biden has signed the controversial infrastructure bill that would increase tax provisions on crypto. Deputy governor of the Bank of England Sir Jon Cunliffe has urged regulators to “think hard” about the disruption cryptocurrency could cause to the traditional financial system. This comes at the same time as the London city council is considering banning cryptocurrency adverts in TFL services.