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.
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.
|#||Crypto||Prediction||Accuracy||CVIX||Price||24h||7d||Market Cap||7d price change|
|1||BTC||Bitcoin predictions||79.6%||31||$43 820.10||1.39%||13.14%||$857 334 806 631|
|2||ETH||Ethereum predictions||76.8%||36||$2 361.38||0.41%||12.42%||$283 880 573 853|
|3||USDT||Tether predictions||92.4%||1||$1.000299||0.02%||-0.02%||$90 362 643 646|
|4||XRP||XRP predictions||82.4%||28||$0.681118||5.93%||10.95%||$36 751 390 365|
|5||BNB||Binance Coin predictions||86.8%||18||$240.90||3.09%||5.40%||$36 543 180 385|
|6||SOL||Solana predictions||78.8%||39||$75.73||6.81%||22.25%||$32 258 285 071|
|7||USDC||USD Coin predictions||93.6%||1||$1.000125||0%||0.01%||$24 502 884 471|
|8||ADA||Cardano predictions||82%||37||$0.617471||27.74%||59.37%||$21 808 674 474|
|9||DOGE||Dogecoin predictions||75.2%||53||$0.101944||5.02%||21.08%||$14 492 322 552|
|10||AVAX||Avalanche predictions||72.4%||50||$32.71||20.35%||48.38%||$11 963 701 556|
|11||STETH||Lido stETH predictions||92.4%||1||$2 941.39||-0.40%||-3.32%||$10 258 752 564|
|12||TRX||TRON predictions||92%||7||$0.107625||1.58%||4.25%||$9 521 831 874|
|13||WTRX||Wrapped TRON predictions||94%||7||$0.107531||1.92%||4.08%||$9 513 557 659|
|14||LINK||Chainlink predictions||77.6%||38||$16.84||5.42%||6.77%||$9 377 894 789|
|15||DOT||Polkadot predictions||76%||38||$7.44||19.08%||34.95%||$9 335 385 230|
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