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

Crypto news: Positive sentiment as bitcoin (BTC) tests $50K

By Daniela Ešnerová

10:44, 22 December 2021

A pile of golden bitcoins rest on a computer circuit
Is a change coming the price of BTC? – Photo: Shutterstock

Bitcoin (BTC) has passed the $49,000 after trading below the $50,000 level for most of December.

The crypto king has been in retreat since the crash on 4 December. Analysis of sentiment among retail investors suggests that while the initial crash was seen as a buying opportunity, this attitude lessened during the weeks crypto markets were in the red. 

According to analysis by cryptocurrency research firm Santiment, immediately after the the plunge “the amount of ‘buy the dip’ mentions on crypto social media soared, but have largely disappeared over the past ten days”. 

Does positive reaction indicate a change?

But this changed on 21 December after the cryptocurrency started picking up. “Bitcoin’s social metrics remain slightly bearish, though they are starting to react positively to the price momentum,” added Santiment. “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.”

Santiment also analysed BTC addresses, which showed a lack of strong accumulation into the current range home to cryptocurrency whales. 

“In the past seven days, the combined balance of 100-10,000 BTC addresses has declined by 10,000 BTC, continuing its see-saw pattern for another week,” added Santiment.

What is your sentiment on BTC/USD?

99061.20
Bullish
or
Bearish
Vote to see Traders sentiment!

XRP/USD

1.40 Price
+17.490% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

ADA/USD

0.88 Price
+9.810% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.00646

BTC/USD

99,061.20 Price
+1.060% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

DOGE/USD

0.39 Price
+2.430% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.0012872

Other crypto news 

  • El Salvador bought 21 bitcoins to mark the 21st day of 21st year of 21st century, tweeted the country’s president Nayib Bukele.

Quote of the day 

In a cheeky tweet, Barry Silbert, founder and chief executive of of Digital Currency Group (a conglomerate of five cryptocurrency-focused companies), poked fun at former Twitter CEO Jack Dorsey. 

“You don’t own ‘Web3’,” said Dorsey in a tweet yesterday. “The VCs and their LPs do. It will never escape their incentives. It’s ultimately a centralised entity with a different label. Know what you’re getting into.”

In response, Silbert said: 

“Making a bunch of web4 investments. Ask me anything.”

Round-up of coins by market capitalisation

As of 10:00 GMT:

Winners and losers

  • Weekly gains of terra (LUNA) and avalanche (AVAX) of 60.26% and 33.82% trumped over those of the rest of the top 10 coins
  • Elrond (EGLD) and gala (GALA) lost 11.82% and 9.71% over the last seven days

Markets in this article

AVAX/USD
Avalanche / USD
36.4521 USD
0.3904 +1.090%
AVAX/USD
Avalanche / USD
36.4521 USD
0.3904 +1.090%
BNB/USD
Binance Coin / USD
636.14 USD
7.59 +1.220%
BNB/USD
Binance Coin / USD
636.14 USD
7.59 +1.220%
BTC/USD
Bitcoin / USD
99061.20 USD
1041.9 +1.060%

Rate this article

Related reading

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