On Wednesday, bitcoin – which is seen as a hedge against inflation – reacted positively to the US Consumer Price Index report, which showed that inflation rose to 7% in December, the highest in some 50 years.
The majority of altcoins followed suit, with the overall market gaining 2.98% over the last 24 hours.
But the two canine-themed cryptos saw the biggest daily gains among the top 50 cryptocurrencies, with DOGE adding 12.81% and SHIB going up by 11.79%.
Other crypto news
A group of US banks created a partnership to develop a bank-minted stablecoin. The consortium said its stablecoin is being minted to remove friction from the financial system and open up new financial opportunities using blockchain and distributed ledger technology.
Hedge fund Citadel Securities took $1.15bn (£845m) in funding from private equity firms Sequoia and Paradigm to boost operations into cryptocurrencies. “In Sequoia and Paradigm, we have partners that appreciate how the strength of our market expertise, advanced predictive analytics and superlative software engineering can redefine an industry,” said Citadel chair Ken Griffin.
Quote of the day
Alkesh Shah, Bank of America global crypto and digital asset strategist, wrote in a research note:
Top coins by market capitalisation
As of 11:05 UTC:
- Bitcoin (BTC) was up 2.55% and trading at $43,931.87.
- Ether (ETH) climbed 3.50% to $3,367.13.
- Binance coin (BNB) added 4.17% to $483.63.
Winners and losers
- Near protocol (NEAR) recorded its all-time high of $18.31.
- Metaverse tokens axie infinity (AXS) and sandbox (SAND) lost 25.65% and 18.86% respectively over the last seven days of trading.
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.