CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Bitcoin bounces back above the $50,000 level

By David Burrows

07:46, 24 December 2021

Bitcoins and wallet. Photo: Alamy
Bitcoin fell sharply in early December. Photo: Alamy

Bitcoin bounced back over the $50,000 mark today – in early morning trading UK time, it was up over 5% to $50,972.

Other cryptos rose too – Ethereum was up over 3% to $4,093.64; Binance Coin was up over 4% to $545.81 while Litecoin was up over 6% to $163.90.

Earlier this week, Bitcoin passed the $49,000 mark after trading below the $50,000 level for most of December.

The crypto had a mixed experience since the crash at the beginning of December. The initial crash was seen as a buying opportunity, however investor appetite fell away as crypto markets continued to show in the red.

XRP/USD

0.63 Price
-6.240% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

LUNC/USD

0.00 Price
-10.630% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.00000338

DOGE/USD

0.10 Price
-4.130% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.0012872

ETH/USD

2,246.16 Price
-4.970% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00

Late December pick-up

As reported in Capital.com earlier this week, the cryptocurrency started picking up from 21 December onwards.

At the time, the cryptocurrency research firm Santiment responded to the move, saying: “Bitcoin’s social metrics remain slightly bearish, though they are starting to react positively to the price momentum.”

It added: “It may be prudent to keep an eye on bitcoin’s sentiment chart in particular. Assuming we see another break above $50,000 in days to come, a new wave of retail euphoria may signal renewed danger for the benchmark coin.”

Read more: Positive sentiment as bitcoin tests k

Markets in this article

BNB/USD
Binance Coin / USD
239.62 USD
-6.19 -2.580%
BNB/USD
Binance Coin / USD
239.62 USD
-6.19 -2.580%
BTC/USD
Bitcoin / USD
42278.50 USD
-1586.65 -3.620%
ETH/USD
Ethereum / USD
2246.16 USD
-117.29 -4.970%
LTC/USD
Litecoin / USD
73.52 USD
-4.06 -5.260%

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading