Bitcoin
BTC$41 312.94

-1.79%

Ethereum
ETH$3 057.90

-4.13%

Tether
USDT$1.000957

0.03%

Binance Coin
BNB$454.95

-4.03%

Cardano
ADA$1.37

-11.53%

USD Coin
USDC$0.999548

-0.04%

The traders choice for two-way volatility in Bitcoin


29 Oct 2021

#Bitcoin

As the world gears up for new ETFs that capture short exposure on Bitcoin futures, as well as involving a degree of leverage, one has to feel excited that new products are being developed to take advantage of moves in Crypto. The Cryptocurrency evolution continues in earnest. ETFs are fantastic products and they will play an ever-important role in the Crypto ecosystem. However, we should remember that they're still beholden to the NYSE trading hours and for active traders this can limit the opportunity. CFDs facilitate both long and short exposures, meaning that traders have the flexibility to move in and out of positions and capture any directional trends; higher or lower.

The trader can even trade the outperformance of one Cryptocurrency against another – a ‘pairs’ or ‘arbitrage’ trade – by going long the coin they think will outperform and shorting the potential underperformer, with the idea of netting off the performance.

The ability to go short with ease and potentially profit from a quick drawdown could be appealing – not just for HOLDers who may look for a hedge for their underlying position in a time of uncertainty, but more so for active traders, who perhaps are just keen to trade price action, trends, and the general flow of capital. Whilst the hold times on short positions are rarely longer than a day or two, Pepperstone pay 7.5p on short swaps – naturally the capital move should always be the primary consideration but being paid if the position is held past rollover can be a sweetener.

Bitcoin (BTCUSD) chart

As we’ve seen through this week, there have been a number of instances when Bitcoin has cratered in minutes and one questions if this something that will increase in frequency? Bitcoin traders have to consider, especially with price oscillating around $60k, that rapid moves should be the core consideration in one’s risk management strategy.

Moves of $3000 in a short space of time may appeal to short-term traders who can take the time frame in and recognise when liquidations are a higher probability of playing out – where the market senses a big seller is in the market and subsequently the buyers step aside, the bid comes out of the market and the price can be free to drop rapidly – essentially flow 101. Being able to capture that movement is what CFDs are really able to offer the retail trader.

It feels like this is the new volatility regime we’re in. We may have quick and protracted moves lower, but the rally to recoup the losses is seemingly just as quick. Down and up the elevator. Bitcoin can be a great trending vehicle, but one questions if these rapid bouts of two-way movement become far more frequent – For active traders CFDs could well be most effective tool to capture that movement.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 72.4% 61 $41 312.94 -1.79% -2.97% $782 208 393 376 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 65.6% 74 $3 057.90 -4.13% -4.99% $364 557 204 266 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 92.8% 1 $1.000957 0.03% 0.07% $78 389 539 616 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 71.6% 61 $454.95 -4.03% -0.74% $75 119 228 033 BNB 7 days price change
5 Cardano (ADA) ADA Cardano predictions 71.2% 51 $1.37 -11.53% 13.83% $45 869 836 376 ADA 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 90.8% 1 $0.999548 -0.04% -0.05% $45 742 193 035 USDC 7 days price change
7 Solana (SOL) SOL Solana predictions 62.8% 81 $134.45 -3.98% -3.06% $42 237 959 711 SOL 7 days price change
8 XRP (XRP) XRP XRP predictions 66.8% 64 $0.728701 -3.80% -4.17% $34 732 162 139 XRP 7 days price change
9 Terra (LUNA) LUNA Terra predictions 69.6% 57 $76.09 -1.12% 0.67% $27 219 693 512 LUNA 7 days price change
10 Polkadot (DOT) DOT Polkadot predictions 72% 51 $23.84 -5.97% -7.36% $23 544 579 275 DOT 7 days price change
11 Dogecoin (DOGE) DOGE Dogecoin predictions 77.6% 46 $0.160728 -5.76% 5.59% $21 323 857 260 DOGE 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 62.4% 79 $81.61 -6.07% -9.81% $19 942 092 907 AVAX 7 days price change
13 SHIBA INU (SHIB) SHIB SHIBA INU predictions 68.8% 63 $0.000027 -4.93% -3.67% $15 025 615 032 SHIB 7 days price change
14 Polygon (MATIC) MATIC Polygon predictions 69.2% 59 $2.02 -8.18% -12.60% $14 789 690 265 MATIC 7 days price change
15 Binance USD (BUSD) BUSD Binance USD predictions 96% 1 $0.999731 -0.10% -0.13% $14 211 573 940 BUSD 7 days price change

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