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Crypto market wrap: Altcoin prices in the green despite Celsius woes


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Cryptocurrency prices were well in the green on Thursday despite the Celsius Network's latest woes. - Photo: Shutterstock

Altcoin prices were well in the green on Thursday despite the Celsius Network’s latest woes.

Several coins spiked a day after cryptocurrency lender and trader Celsius filed for Chapter 11 bankruptcy in the US. The network’s coin (CEL) was an exception to the widespread gains as its price nosedived.

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CEL to USD

Network’s coin nosedives

CEL was down about 18% as conventional markets closed in North America. (All figures based on CoinMarketCap data.)

That decline contrasted sharply with large increases from the likes of uniswap (UNI), polygon (MATIC), AAVE, arweave (AR), compound (COMP), elrond (EGLD) and synthetix (SNX), which saw gains ranging from about 15% to 21%. Several other coins enjoyed sizeable increases that hovered near 10%.

UNI to USD

Company froze withdrawals

The Celsius Network bankruptcy filing came after the company behind the network froze customer transfers and withdrawals. Celsius held about $4.3bn (XX) in assets and $5.5bn in liabilities, a court document showed.

The crypto lender said in a statement it had $167m in cash on hand, has filed a series of customary motions with the court to allow the company to continue operations and to ensure a smooth transition into Chapter 11.

However, Celsius is not requesting authority to allow customer withdrawals at this time and customer claims will be addressed through the Chapter 11 process.

XRP/USD

0.49 Price
+2.810% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 0.00600

BTC/USD

19,628.80 Price
+1.100% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 60.00

ETH/USD

1,343.20 Price
+1.000% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 5.50

DOGE/USD

0.06 Price
+0.510% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 21:00 (UTC)
Spread 0.0008610

The Celsius filing came after another crypto lender, Voyager Digital, filed for Chapter 11 bankruptcy last week. Daniel Besikof, a leading bankruptcy lawyer, recently told Capital.com that retail investors will have to do extra homework in the wake of Voyager’s demise.

 

Ethereum also jumps

Ethereum (ETH) and bitcoin (BTC) both made noticeable gains on Thursday. ETH rose about 10% and BTC was up about 5%, surpassing the $20,000 mark.

Bitcoin’s rise resulted even as stock prices were falling. Since the beginning of the year, the world’s largest cryptocurrency has becoming increasingly in sync with macroeconomic forces.

Bitcoin’s increase also came as analysts and other observers worry that increasing global inflation could prompt the coin to plunge.

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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.
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