CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money
AL English
Country • Albania
    Entity • Capital Com Online Investments Ltd (SCB) (Regulated by SCB)
    English العَرَبِيَّة Deutsch ελληνικά Español Français Italiano Magyar Nederlands Polski Română Русский 简体中文 繁體中文

    BTC sinks below $55,000 as COVID variant spooks market

    By Daniela Ešnerová


    Updated

    Golden coins with bitcoin (BTC) logo.
    A Reddit user hailed Black Friday prices in cryptomarkets as bitcoin (BTC) fell bellow $55,000 – Photo: Shutterstock

    Fears of a new variant of coronavirus, which could evade vaccine protections, hit cryptocurrencies market harder than equity markets, as the global market capitalisation sank 7.0% over the last 24 hours to $2.44trn in London morning trading.

    For comparison, FTSE-100 index was down 3% in London morning trading.

    News about the discovery of the B1.1.529 variant coincided with bitcoin options expiry date on Friday 26 November, 2021, which traditionally means higher volatility in cryptocyrrency markets.

    Bitcoin's (BTC's) 24-hours low was $54,086.04, according to CoinMarketCap.com.

    Meanwhile, pseudonymous Dutch economist, known as Plan B, took to Twitter noting that one of his propretory bitcoin price prediction model is likely to miss the November close, which was forecasted to be $98,000. 

    Gold

    2,573.09 Price
    -0.020% 1D Chg, %
    Long position overnight fee -0.0172%
    Short position overnight fee 0.0090%
    Overnight fee time 22:00 (UTC)
    Spread 0.30

    US100

    20,993.60 Price
    -0.390% 1D Chg, %
    Long position overnight fee -0.0248%
    Short position overnight fee 0.0026%
    Overnight fee time 22:00 (UTC)
    Spread 1.8

    XRP/USD

    0.74 Price
    +7.950% 1D Chg, %
    Long position overnight fee -0.0616%
    Short position overnight fee 0.0137%
    Overnight fee time 22:00 (UTC)
    Spread 0.01168

    BTC/USD

    89,237.75 Price
    +0.310% 1D Chg, %
    Long position overnight fee -0.0616%
    Short position overnight fee 0.0137%
    Overnight fee time 22:00 (UTC)
    Spread 106.00

    “Floor model $98K Nov close will probably be a first miss (after nailing August, September, October),” Plan B posted on Twitter. He then added, that his stock-to-flow model - widely known in among cryptomarket watchers - is “not affected and indeed on track towards $100K.”

    Quote of the day: “It's Black Friday prices.”

    Cryptocurrency investors took to social media to reveal which coins they are buying in this “dip”. A Reddit user, going by a nickname of Spreizbacken, here expressed their emotions sparked by the market sell-off.

    “It's Black Friday prices. This triggers so much dopamine in my brain it feels like I'm actually high!”

    Round-up of coins by market capitalisation

    As of 09:30 UTC:

    • Bitcoin (BTC) was down 4.04% to $55,119.37
    • Ethereum (ETH) lost 4.14% and was trading at $4,099.44
    • Binance coin (BNB) sunk 5% to $580.69

    Winners and losers:

    • Gala (GALA) token, a blockchain gaming developer that allows gamers to use their unique non-fungible token (NFT) characters in gameplay, was up a whopping 169% over the last seven days of trading making it the biggest weekly gainer among the top 50 digital coins. This comes after NFT was named as 2021’s word of the year by Collins dictionary earlier this week 

    • Avalanche (AVAX) and Crypto.com (CRO) lost 17.83% and 16.96% respectively and topped table of the biggest weekly losers among top 50 cryptocurrencies by market capitalisation. This was however, against their record breaking rallies, that brought these tokens to number 11 and 13 in the ranking of the biggest coins

    Read more:  Global risk assets slump as new Covid variant emerges

    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 in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

    Still looking for a broker you can trust?

    Join the 660,000+ 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