# Huobi HTX Analyst Sees Limited Near-Term Crypto Downside After Leverage Flush

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/53579
Published: 2026-11-11T04:54:14.000Z
Updated: 2026-11-11T04:54:14.000Z
Section: Investing

> Cloud cited negative funding and a nearly 20% weekly drop in perpetual futures open interest, while saying a rebound needs confirmation from inflation data.

Bitcoin (BTC) briefly fell to about $73,000 after U.S. October CPI came in above expectations and markets began pricing in a possible 50-basis-point rate increase in December. Huobi HTX chief analyst Cloud said leverage has been substantially cleared from crypto markets, limiting the room for another sharp near-term drop, but cautioned that the decline does not establish an immediate rebound.

Bitcoin was $73,714 as of 11:49 p.m. ET Nov. 10 (04:49 UTC Nov. 11). Cloud cited negative funding rates, a nearly 20% weekly decline in perpetual futures open interest and the fear and greed index entering deep-fear territory as signs of deleveraging.

Cloud said the Federal Reserve looks for sustained patterns in economic data, so one month of above-forecast inflation is unlikely to change its rate path. He views a 25-basis-point increase as the baseline and a 50-basis-point move as unlikely. He also pointed to tariffs and rent as sources of inflation pressure whose effects should fade, alongside signs of a weakening labor market.

Credit spreads have widened from 93 to 348 basis points, Cloud said, tightening financial conditions. He argued that adding a 50-basis-point increase could create financial stability risks.

Cloud said confirmation would require CPI to fall over the next two months. He said a sustained market decline would begin if inflation exceeds expectations for two consecutive months and a 50-basis-point hike is delivered, a scenario he considers unlikely.