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ETH extends rally alongside SOL and DOT, while BTC retreats

By Mensholong Lepcha


Updated

Illustration of cryptocurrencies
Illustration of cryptocurrencies – Photo: Shutterstock

Ether, Solana and Polkadot were the best performers among top 10 cryptocurrencies in early Asia trade on Wednesday, as Bitcoin fell following hawkish tapering comments from US Federal Reserve chair Jerome Powell.

Number two cryptocurrency Ether rose over 4.5% to $4,704.78 to take its weekly gain to over 8%.

Over the past 24 hours, Ether prices hit an over two-week high of $4,759 as Denver-based investment firm Kelly Strategic Management filed for approval to list an Ether futures exchange-traded fund.

Blockchain networks Solana, Polkadot join Ether rally

“Ethereum is still the favourite crypto bet for most traders and seems like it will make another run towards USD 5000 once risk appetite returns,” said Ed Moya, senior market analyst at brokerage firm OANDA.

Rival blockchain networks Solana’s SOL and Polkadaot’s DOT joined the rally gaining 2.8% to $210.42 and 3.8% to $38.1, respectively.

BTC/USD

38,807.60 Price
-0.110% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

LUNC/USD

0.00 Price
+0.620% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.00000338

XRP/USD

0.62 Price
+0.220% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

BTS/USD

0.01 Price
+2.490% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.0005306

Cardano’s ADA failed to overturn its recent weakness, falling 2.4% to $1.56 in early Asia trade on Wednesday to take its weekly losses up to nearly 10%. The ADA token is about 50% away from its all-time high of $3.09 hit in early September, according to CoinGecko.

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Bitcoin retreats after Fed chair comments

Bellwether cryptocurrency Bitcoin slipped 0.1% to $57,159 on Wednesday morning after having climbed as high as $59,249 over the last 24 hours.

Bitcoin prices retreated after Powell said it is “appropriate in my view to consider wrapping up the taper of our asset purchases, which we actually announced at the November meeting, perhaps a few months sooner” during a Senate Banking Committee hearing on Tuesday, while adding that a report on digital currencies by the Fed is expected in “coming weeks.”

“Bitcoin and Ethereum went in separate ways today. A faster Fed taper and increased rate hike expectations were bad news for bitcoin. Bitcoin is trading more like a risky asset than an inflation hedge,” said Moya of OANDA.

Read more: Sotheby’s postpones Twitter NFT charity auction

Markets in this article

BTC/USD
Bitcoin / USD
38807.60 USD
-43 -0.110%
ADA/USD
Cardano / USD
0.39231 USD
0.00551 +1.440%
ADA/USD
Cardano / USD
0.39231 USD
0.00551 +1.440%
DOT/USD
Polkadot / USD
5.5719 USD
0.0811 +1.490%
DOT/USD
Polkadot / USD
5.5719 USD
0.0811 +1.490%

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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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