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

Cryptocurrencies find support after volatile week

By Neil Dennis

09:42, 24 May 2021

A bubble containing cryptocurrency coins

Cryptocurrencies enjoyed some respite on Monday, reclaiming some of the ground lost after a week of stormy trading conditions.

The cryptocurrency market has had a volatile month since bitcoin hit its record high of $64,778 on 14 April.

There had been some suggestion the market had become a little frothy after global asset managers in the latest Bank of America/Merrill Lynch fund manager survey said bitcoin was the single "most crowded" trade of the month in April.

In the year to April's record high, bitcoin had rallied by more than 1,100%, but then the negatives began to creep in.

Accentuating the negatives

Recent comments by some of the most-closely followed digital asset supporters haven't helped confidence in the cryptocurrency market since April's highs.

Elon Musk, in particular, has been among those to have had the most market impact after his comments provoked rumours – later proved to be false – that his company Tesla had sold some of its bitcoin holdings.

Meanwhile, China has been adding to the negative sentiment after reminding global investors that it will not tolerate cryptocurrency dealings.

BTC/USD

88,567.50 Price
+0.560% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

SOL/USD

213.93 Price
-2.950% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 2.2652

XRP/USD

0.72 Price
+16.750% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

DOGE/USD

0.39 Price
+17.720% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.0012872

This weekend, Beijing policymakers were venting their ire at the crypto-mining industry, leading Huobi Mall and BTC.TOP to suspend their China operations and causing market prices to tumble heavily.

What is your sentiment on MATIC/USD?

0.42462
Bullish
or
Bearish
Vote to see Traders sentiment!

Price action

On Monday, however, prices were higher. There was no particular event-driven reason for the gains, suggesting buyers were seeking bargains after several days of heavy selling.

Nigel Green at deVere Group said: "Some of the shrewdest investors have consistently utilised market volatility as major buying opportunities in traditional financial markets – and the cryptocurrency market should be no different."

By mid morning in London, bitcoin was up 7% at $36,530 while ethereum added 11.8% to $2,272.

Among the biggest movers in the top 10 by market cap, cardano gained 16.1% at $1.463 and binance coin added 13.2% to $293.34.

Read more: Bitcoin falls below ,000 after China ban

 

Rate this article

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