Bitcoin to New Zealand dollar: trade BTC to NZD pair and track its real-time price.
The Bitcoin to New Zealand Dollar pair is a popular cryptocurrency-to-fiat pair that tracks the relationship between Bitcoin (BTC), the most traded crypto token in the world, and the New Zealand dollar (NZD), which has been the official currency of New Zealand since 1967. The value of BTC/NZD reflects how many Bitcoins it takes to purchase one NZD or how many Bitcoins can be purchased with one NZD.
The New Zealand dollar is the 10th most traded currency in the world, even though its economy is not that large in terms of its GDP. New Zealand’s economy is actually the 51st in the world, yet it relies heavily on global trade, with some of its key commercial partners including Australia, the European Union, China, the United States, and Japan.
The BTC to NZD is a popular crypto-to-fiat pair that enjoys high liquidity as both currencies are important players in their respective markets. Bitcoin, on the one hand, is by far the most important cryptocurrency in the world with a market capitalisation that exceeds $100 billion, while the New Zealand Dollar is widely tracked by both retail and institutional investors considering the importance of this currency in the world stage.
Traders can profit from trading BTC/NZD by analysing the fundamentals that drive the price of both the base and counter currency. Bitcoin’s most powerful drivers include the degree in which the currency is adopted as a mainstream payment method, along with its adoption as a suitable financial asset.
The price of the New Zealand dollar is mainly influenced by the economic growth of key partners such as China and Australia, along with monetary policy decisions from the Reserve Bank of New Zealand.
CFDs can be conveniently used to trade BTC to NZD pairs and traders can benefit from using leveraged positions to further expand the potential profitability of their long and short positions.
Bitcoin was the epicentre of the cryptocurrency market, after being introduced in 2009 as a potential paradigm shift away from traditional government-controlled currencies. Ever since then, BTC and its underlying blockchain technology have disrupted the financial world by creating not just an alternative payment method, but also a new asset class.
Many successful investors see a lot of potential in BTC's long-term performance, as the cryptocurrency continues to gain credibility in the investment community. Meanwhile, retailers and online businesses are offering its clients the possibility of paying for their commercial transactions by using BTC. It could further fuel the demand for the cryptocurrency, pushing the price in an upward direction as a result.
New Zealand is a highly-developed free-market economy that relies on its services sector, which accounts for more than 60 per cent of the country’s GDP. Moreover, New Zealand is a well-known producer of high-quality dairy products, meat, seafood, and a selected variety of fruits.
The New Zealand Dollar was initially pegged to the US Dollar until 1985 when the Reserve Bank decided to let it float freely. NZD has been gaining territory against the US dollar since the beginning of 2020, even though this upward trend was temporarily reversed by a flight-to-safety reaction in light of the coronavirus outbreak.
Traders can benefit from BTC/NZD price swings by taking long or short positions on this crypto-to-fiat pair using Capital.com’s proprietary trading platform which features a real-time price chart and changes a 0% commission on trades.