The current week will bring exciting events to the cryptocurrency market, with the FOMC decision coming out on Wednesday. Currently, the FED is expected to hike rates by 50 basis points, which drives the narrative of a mini-pivot. However, we disagree with this assessment as we argue that higher rates will still put more burden on the economy, which is already slowing down significantly. As a result of the rate hike, we expect a return of the risk of aversion, affecting the price of Bitcoin and dragging it lower over time.
Furthermore, the cryptocurrency market still has not gone through the fallout of FTX, leaving many questions about market stability open. In our opinion, the market will likely see more bankruptcies among cryptocurrency institutions in the coming months, threatening the current calls for the market bottom. Therefore, we remain skeptical about these statements and stick to our bearish view. In line with that, we maintain price targets at 15 000$ and 13 000$.
Furthermore, the cryptocurrency market still has not gone through the fallout of FTX, leaving many questions about market stability open. In our opinion, the market will likely see more bankruptcies among cryptocurrency institutions in the coming months, threatening the current calls for the market bottom. Therefore, we remain skeptical about these statements and stick to our bearish view. In line with that, we maintain price targets at 15 000$ and 13 000$.
π10
Continue ..
BREAKOUTβ> SUPPORTβ> CONSOLIDATIONβ> EXPANSION / FAKEOUT??
EXPANSIONπ
FAKEOUT π₯
@Banaa_898
BREAKOUTβ> SUPPORTβ> CONSOLIDATIONβ> EXPANSION / FAKEOUT??
EXPANSIONπ
FAKEOUT π₯
@Banaa_898
π12
Massive Bitcoin Volatility as US Inflation (CPI) Clocks in at 7.1% For November
The CPI numbers for November are in and this cause massive volatility on the crypto market.
The United States Bureau of Labor Statistics published the numbers for the Consumer Price Index.
This is the most commonly-used metric to gauge inflation in the United States, and it clocked in at 7.1%.
As itβs almost always the case, this caused massive turmoil in the cryptocurrency market, and most of the coins are going through serious volatility.
At the time of this writing, Bitcoinβs price is trading around $17,800 on Binance.
The CPI numbers for November are in and this cause massive volatility on the crypto market.
The United States Bureau of Labor Statistics published the numbers for the Consumer Price Index.
This is the most commonly-used metric to gauge inflation in the United States, and it clocked in at 7.1%.
As itβs almost always the case, this caused massive turmoil in the cryptocurrency market, and most of the coins are going through serious volatility.
At the time of this writing, Bitcoinβs price is trading around $17,800 on Binance.
π₯10π5
Elon Mask is going to clean Twitter by deleting 1.5 billion accounts with no tweets and no log in for years.
Though the idea seems quite obvious, it raises an important question: will historically valuable Twitter accounts be deleted too?
Michael Saylor said the right thing:
βTwitter can add enormous value to the world by organizing the flow of news & views of billions of people and millions of organizations worldwide.β
Hal Finneyβs Twitter account is a good example. It has been inactive since 2010 thus is qualified for being deleted. So what's the problem you may say? His Twitter account is historically valuable for both Bitcoin community and Twitter.
Hal Finney was a prominent cryptographer, computer engineer, software developer, and an early Bitcoin contributor (some people believe he is Satoshi Nakamoto although he denied this). He is the first who received the Bitcoin transaction from Satoshi and the first who mentioned Bitcoin on Twitter βπΌ
Despite its inactivity for 13 years, Finneyβs Twitter account is a showcase of the networkβs early days. In the digital age, a social media account of a person whoβs gone but who was at the forefront of new technologies is the same as a museum exhibit. Deleting such an account would be an ignorant history destruction.
Should Twitter make exceptions for socially valuable accounts?
ππΌ Of course! This job should be done manually.
π It's just a Twitter account, not a big deal.
Contact - @Banaa_898 for more crypto insights π
Though the idea seems quite obvious, it raises an important question: will historically valuable Twitter accounts be deleted too?
Michael Saylor said the right thing:
βTwitter can add enormous value to the world by organizing the flow of news & views of billions of people and millions of organizations worldwide.β
Hal Finneyβs Twitter account is a good example. It has been inactive since 2010 thus is qualified for being deleted. So what's the problem you may say? His Twitter account is historically valuable for both Bitcoin community and Twitter.
Hal Finney was a prominent cryptographer, computer engineer, software developer, and an early Bitcoin contributor (some people believe he is Satoshi Nakamoto although he denied this). He is the first who received the Bitcoin transaction from Satoshi and the first who mentioned Bitcoin on Twitter βπΌ
Despite its inactivity for 13 years, Finneyβs Twitter account is a showcase of the networkβs early days. In the digital age, a social media account of a person whoβs gone but who was at the forefront of new technologies is the same as a museum exhibit. Deleting such an account would be an ignorant history destruction.
Should Twitter make exceptions for socially valuable accounts?
ππΌ Of course! This job should be done manually.
π It's just a Twitter account, not a big deal.
Contact - @Banaa_898 for more crypto insights π
π₯9π5β€1
Bitcoin and Ether in for Quiet Holidays According to Glassnode
Bitcoin and crypto markets could be in for a quiet time over the holiday period following a highly tumultuous year. However, long-term supply hodled has reached a new high.
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$185 Million in Liquidations as Bitcoin Falls Under $20K
Bitcoin Skyrockets Toward $20K Leaving $100M in Daily Liquidations
Bitcoin_Red
Bitcoin Plummets Below $16k, Taps Another 2-Year Low
Tags: Bitcoin Bitcoin (BTC) Price
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About The Author
Martin J. Young
More posts by this author
Martin has been writing on cybersecurity and infotech for over two decades. He has previous trading experience and has been covering developments in the blockchain and cryptocurrency industry since 2017. Contact Martin: LinkedIn
Bitcoin and crypto markets could be in for a quiet time over the holiday period following a highly tumultuous year. However, long-term supply hodled has reached a new high.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.
You Might Also Like:
$185 Million in Liquidations as Bitcoin Falls Under $20K
Bitcoin Skyrockets Toward $20K Leaving $100M in Daily Liquidations
Bitcoin_Red
Bitcoin Plummets Below $16k, Taps Another 2-Year Low
Tags: Bitcoin Bitcoin (BTC) Price
Enjoy reading? Share with your friends
Telegram
About The Author
Martin J. Young
More posts by this author
Martin has been writing on cybersecurity and infotech for over two decades. He has previous trading experience and has been covering developments in the blockchain and cryptocurrency industry since 2017. Contact Martin: LinkedIn
π16
#BTC made a positive impact on fundamental news and broken the resistance. Price now reaching out the major resistance zone of $18,100 - 19,850. More movement yet to come. Expecting a ran above the major resistance.
π7β€1π₯1
BTC is well supported at Weekly MA 350 after the recent crash in the market, A rare indicator called Gaussian Channel (GC) may turn green next month and previously when it turns green BTC already hit with its first mini rally. the previous two GC cycles took 180 - 183 weeks to turn green and we are at 183rd week in current cycle also if we conjunct FIB levels along with GC then it indicates that BTC is very close to start new bull cycle to aim 1.414 FIB extension (around 250K) which was the Top of previous two GC cycles
π6π₯°3
What is CFD trading?
Instead, when you trade a CFD, you are agreeing to exchange the difference in the price of an asset from the point at which the contract is opened to when it is closed. One of the main benefits of CFD trading is that you can speculate on price movements in either direction, with the profit or loss you make dependent on the extent to which your forecast is correct.
The sections that follow explain some of the main features and uses of contracts for difference:
β’ Short and long trading
β’ Leverage
β’ Margin
β’ Hedging
Short and long CFD trading explained
CFD trading enables you to speculate on price movements in either direction. So while you can mimic a traditional trade that profits as a market rises in price, you can also open a CFD position that will profit as the underlying market decreases in price. This is referred to as selling or βgoing shortβ, as opposed to buying or βgoing longβ.
If you think Apple shares are going to fall in price, for example, you could sell a share CFD on the company. Youβll still exchange the difference in price between when your position is opened and when it is closed, but will earn a profit if the shares drop in price and a loss if they increase in price.
With both long and short trades, profits and losses will be realised once the position is closed.
Learn how to trade CFDs
Leverage in CFD trading explained
CFD trading is leveraged, which means you can gain exposure to a large position without having to commit the full cost at the outset. Say you wanted to open a position equivalent to 500 Apple shares. With a standard trade, that would mean paying the full cost of the shares upfront. With a contract for difference, on the other hand, you might only have to put up 5% of the cost.
While leverage enables you to spread your capital further, it is important to keep in mind that your profit or loss will still be calculated on the full size of your position. In our example, that would be the difference in the price of 500 Apple shares from the point you opened the trade to the point you closed it. That means both profits and losses can be hugely magnified compared to your outlay, and that losses can exceed deposits. For this reason, it is important to pay attention to the leverage ratio and make sure that you are trading within your means.
Margin explained
Leveraged trading is sometimes referred to as βtrading on marginβ because the funds required to open and maintain a position β the βmarginβ β represent only a fraction of its total size.
When trading CFDs, there are two types of margin. A deposit margin is required to open a position, while a maintenance margin may be required if your trade gets close to incurring losses that the deposit margin β and any additional funds in your account β will not cover. If this happens, you may get a margin call from your provider asking you to top up the funds in your account. If you donβt add sufficient funds, the position may be closed and any losses incurred will be realised.
Hedging with CFDs explained
CFDs can also be used to hedge against losses in an existing portfolio.
For example, if you believed that some ABC Limited shares in your portfolio could suffer a short-term dip in value as a result of a disappointing earnings report, you could offset some of the potential loss by going short on the market through a CFD trade. If you did decide to hedge your risk in this way, any drop in the value of the ABC Limited shares in your portfolio would be offset by a gain in your short CFD trade.
CFD trading is defined as βthe buying and selling of CFDsβ, with βCFDβ meaning βcontract for differenceβ. CFDs are a derivative product because they enable you to speculate on financial markets such as shares, forex, indices and commodities without having to take ownership of the underlying assets.https://www.ig.com/en/cfd-trading/what-is-cfd-trading-how-does-it-work
Instead, when you trade a CFD, you are agreeing to exchange the difference in the price of an asset from the point at which the contract is opened to when it is closed. One of the main benefits of CFD trading is that you can speculate on price movements in either direction, with the profit or loss you make dependent on the extent to which your forecast is correct.
The sections that follow explain some of the main features and uses of contracts for difference:
β’ Short and long trading
β’ Leverage
β’ Margin
β’ Hedging
Short and long CFD trading explained
CFD trading enables you to speculate on price movements in either direction. So while you can mimic a traditional trade that profits as a market rises in price, you can also open a CFD position that will profit as the underlying market decreases in price. This is referred to as selling or βgoing shortβ, as opposed to buying or βgoing longβ.
If you think Apple shares are going to fall in price, for example, you could sell a share CFD on the company. Youβll still exchange the difference in price between when your position is opened and when it is closed, but will earn a profit if the shares drop in price and a loss if they increase in price.
With both long and short trades, profits and losses will be realised once the position is closed.
Learn how to trade CFDs
Leverage in CFD trading explained
CFD trading is leveraged, which means you can gain exposure to a large position without having to commit the full cost at the outset. Say you wanted to open a position equivalent to 500 Apple shares. With a standard trade, that would mean paying the full cost of the shares upfront. With a contract for difference, on the other hand, you might only have to put up 5% of the cost.
While leverage enables you to spread your capital further, it is important to keep in mind that your profit or loss will still be calculated on the full size of your position. In our example, that would be the difference in the price of 500 Apple shares from the point you opened the trade to the point you closed it. That means both profits and losses can be hugely magnified compared to your outlay, and that losses can exceed deposits. For this reason, it is important to pay attention to the leverage ratio and make sure that you are trading within your means.
Margin explained
Leveraged trading is sometimes referred to as βtrading on marginβ because the funds required to open and maintain a position β the βmarginβ β represent only a fraction of its total size.
When trading CFDs, there are two types of margin. A deposit margin is required to open a position, while a maintenance margin may be required if your trade gets close to incurring losses that the deposit margin β and any additional funds in your account β will not cover. If this happens, you may get a margin call from your provider asking you to top up the funds in your account. If you donβt add sufficient funds, the position may be closed and any losses incurred will be realised.
Hedging with CFDs explained
CFDs can also be used to hedge against losses in an existing portfolio.
For example, if you believed that some ABC Limited shares in your portfolio could suffer a short-term dip in value as a result of a disappointing earnings report, you could offset some of the potential loss by going short on the market through a CFD trade. If you did decide to hedge your risk in this way, any drop in the value of the ABC Limited shares in your portfolio would be offset by a gain in your short CFD trade.
IG
What is CFD trading and What Does CFD Mean?
Trade CFDs with the world's top CFD provider. Learn about contracts for difference and how to trade CFDs with us.
π10
How do CFDs work?
Now you understand what contracts for difference are, itβs time to take a look at how they work. Here we explain four of the key concepts behind CFD trading: spreads, deal sizes, durations and profit/loss.
Spread and commission
CFD prices are quoted in two prices: the buy price and the sell price.
The sell price (or bid price) is the price at which you can open a short CFD
The buy price (or offer price) is the price at which you can open a long CFD
Sell prices will always be slightly lower than the current market price, and buy prices will be slightly higher. The difference between the two prices is referred to as the spread.
Most of the time, the cost to open a CFD position is covered in the spread: meaning that buy and sell prices will be adjusted to reflect the cost of making the trade.
The exception to this is our share CFDs, which are not charged via the spread. Instead, our buy and sell prices match the price of the underlying market and the charge for opening a share CFD position is commission-based. By using commission, the act of speculating on share prices with a CFD is closer to buying and selling shares in the market.
Learn more about the spread
Deal size
CFDs are traded in standardised contracts (lots). The size of an individual contract varies depending on the underlying asset being traded, often mimicking how that asset is traded on the market.
Silver, for example, is traded on commodity exchanges in lots of 5000 troy ounces, and its equivalent contract for difference also has a value of 5000 troy ounces. For share CFDs, the contract size is usually representative of one share in the company you are trading. To open a position that mimics buying 500 shares of HSBC, youβd buy 500 HSBC CFD contracts.
This is another way in which CFD trading is more similar to traditional trading than other derivatives, such as options.
Duration
Most CFD trades have no fixed expiry β unlike options. Instead, a position is closed by placing a trade in the opposite direction to the one that opened it. A buy position of 500 gold contracts, for instance, would be closed by selling 500 gold contracts.
If you keep a daily CFD position open past the daily cut-off time (typically 10pm UK time, although this may vary for international markets), youβll be charged an overnight funding charge. The cost reflects the cost of the capital your provider has in effect lent you in order to open a leveraged trade.
This isnβt always the case though, with the main exception being a forward contract. A forward contract has an expiry date at some point in the future, and has all overnight funding charges already included in the spread.
Profit and loss
To calculate the profit or loss earned from a CFD trade, you multiply the deal size of the position (total number of contracts) by the value of each contract (expressed per point of movement). You then multiply that figure by the difference in points between the price when you opened the contract and when you closed it.
Profit or loss
=
(no. of contracts x value of each contract)
x (closing price - opening price)
For a full calculation of the profit or loss from a trade, youβd also subtract any charges or fees you paid. These could be overnight funding charges, commission or guaranteed stop fees.
Say, for instance, that you buy 50 FTSE 100 contracts when the buy price is 7500.0. A single FTSE 100 contract is equal to a $10 per point, so for each point of upward movement you would make $500 and for each point of downward movement you would lose $500 (50 contracts multiplied by $10).
If you sell when the FTSE 100 is trading at 7505.0, your profit would be $2500
2500 = (50 x 10) x (7505.0 - 7500.0)
If you sell when the FTSE 100 is trading at 7497.0, your loss would be $1500
-1500 = (50 x 10) x (7497.0 - 7500.0)
Now you understand what contracts for difference are, itβs time to take a look at how they work. Here we explain four of the key concepts behind CFD trading: spreads, deal sizes, durations and profit/loss.
Spread and commission
CFD prices are quoted in two prices: the buy price and the sell price.
The sell price (or bid price) is the price at which you can open a short CFD
The buy price (or offer price) is the price at which you can open a long CFD
Sell prices will always be slightly lower than the current market price, and buy prices will be slightly higher. The difference between the two prices is referred to as the spread.
Most of the time, the cost to open a CFD position is covered in the spread: meaning that buy and sell prices will be adjusted to reflect the cost of making the trade.
The exception to this is our share CFDs, which are not charged via the spread. Instead, our buy and sell prices match the price of the underlying market and the charge for opening a share CFD position is commission-based. By using commission, the act of speculating on share prices with a CFD is closer to buying and selling shares in the market.
Learn more about the spread
Deal size
CFDs are traded in standardised contracts (lots). The size of an individual contract varies depending on the underlying asset being traded, often mimicking how that asset is traded on the market.
Silver, for example, is traded on commodity exchanges in lots of 5000 troy ounces, and its equivalent contract for difference also has a value of 5000 troy ounces. For share CFDs, the contract size is usually representative of one share in the company you are trading. To open a position that mimics buying 500 shares of HSBC, youβd buy 500 HSBC CFD contracts.
This is another way in which CFD trading is more similar to traditional trading than other derivatives, such as options.
Duration
Most CFD trades have no fixed expiry β unlike options. Instead, a position is closed by placing a trade in the opposite direction to the one that opened it. A buy position of 500 gold contracts, for instance, would be closed by selling 500 gold contracts.
If you keep a daily CFD position open past the daily cut-off time (typically 10pm UK time, although this may vary for international markets), youβll be charged an overnight funding charge. The cost reflects the cost of the capital your provider has in effect lent you in order to open a leveraged trade.
This isnβt always the case though, with the main exception being a forward contract. A forward contract has an expiry date at some point in the future, and has all overnight funding charges already included in the spread.
Profit and loss
To calculate the profit or loss earned from a CFD trade, you multiply the deal size of the position (total number of contracts) by the value of each contract (expressed per point of movement). You then multiply that figure by the difference in points between the price when you opened the contract and when you closed it.
Profit or loss
=
(no. of contracts x value of each contract)
x (closing price - opening price)
For a full calculation of the profit or loss from a trade, youβd also subtract any charges or fees you paid. These could be overnight funding charges, commission or guaranteed stop fees.
Say, for instance, that you buy 50 FTSE 100 contracts when the buy price is 7500.0. A single FTSE 100 contract is equal to a $10 per point, so for each point of upward movement you would make $500 and for each point of downward movement you would lose $500 (50 contracts multiplied by $10).
If you sell when the FTSE 100 is trading at 7505.0, your profit would be $2500
2500 = (50 x 10) x (7505.0 - 7500.0)
If you sell when the FTSE 100 is trading at 7497.0, your loss would be $1500
-1500 = (50 x 10) x (7497.0 - 7500.0)
π32β€6
ππ
π πππππππ πππππ pinned Β«What is CFD trading? CFD trading is defined as βthe buying and selling of CFDsβ, with βCFDβ meaning βcontract for differenceβ. CFDs are a derivative product because they enable you to speculate on financial markets such as shares, forex, indices and commoditiesβ¦Β»
βπ’ #BTC Liquidated Short - $51.4K at $18066.7
βFunding Rate: 0.01%
βFunding Rate: 0.01%
π6π₯4β€3
Fed Hikes Rate by 50bps, Sends BTC Below $18K as Crypto Rally Cools Off (Market Watch)
The crypto market cap was sent below $900 million as BTC loses $18K on 50bps rate hike by the Fed.
Bitcoinβs Price Tumbles Below $18K
On December 13th, the US Bureau of Labor Statistics published the numbers for the Consumer Price Index, which is used to gauge the levels of inflation in the country. They came in at 7.1% for November, which was below the expected 7.3%. Naturally, this led to an increase in the market, and BTCβs price soared to over $18K shortly after.
However, during the FOMC meeting yesterday, Fed Chairman Jerome Powell announced another interest rate hike of 50 basis points, which had the exact opposite effect on the price.
As seen in the above chart, BTCβs price reached an intraday high of around $18,387 (on Binance) but failed to sustain the rally and is currently trading at around $17,600.
The crypto market cap was sent below $900 million as BTC loses $18K on 50bps rate hike by the Fed.
Bitcoinβs Price Tumbles Below $18K
On December 13th, the US Bureau of Labor Statistics published the numbers for the Consumer Price Index, which is used to gauge the levels of inflation in the country. They came in at 7.1% for November, which was below the expected 7.3%. Naturally, this led to an increase in the market, and BTCβs price soared to over $18K shortly after.
However, during the FOMC meeting yesterday, Fed Chairman Jerome Powell announced another interest rate hike of 50 basis points, which had the exact opposite effect on the price.
As seen in the above chart, BTCβs price reached an intraday high of around $18,387 (on Binance) but failed to sustain the rally and is currently trading at around $17,600.
π10
ICYMI: Paypal partners with MetaMask to integrate its buy, sell and hold crypto services with the non-custodial wallet.
"This integration with PayPal will allow our U.S. users to not just buy crypto seamlessly through MetaMask, but also to easily explore the Web3 ecosystem,"
@Banaa_898
"This integration with PayPal will allow our U.S. users to not just buy crypto seamlessly through MetaMask, but also to easily explore the Web3 ecosystem,"
@Banaa_898
π17
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π11β€6
Can the miners survive?
"The loss of miners began since June 12, 2022, when bitcoin reached $26,700, and the cost of mining one bitcoin at that time reached $29,450."β€οΈ
"The loss of miners began since June 12, 2022, when bitcoin reached $26,700, and the cost of mining one bitcoin at that time reached $29,450."
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π9β€5
#BTC didn't give any strong pullback but yeah, price drove down as expected. Price reached the support on 4H TF. This can go deeper around $16,900 and that will be the decisional point next impulsive move.
π10β€2