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General risk-off sentiment drags Bitcoin close to $47,000

By Mensholong Lepcha

01:42, 14 December 2021

Illustration of cryptocurrency coins
Cryptocurrencies fell in-line with equity markets with ether falling about 6% over the last 24 hours – Photo: Shutterstock

Bitcoin fell to hover near the $47,000 mark in early Asia trade on Tuesday while other cryptocurrencies followed suit, as risk-off sentiment prevailed ahead of the US Federal Reserve (Fed) meet due later this week.

Overnight on Monday, US benchmark S&P 500 index fell 0.9% with investors fearing a faster-than-expected pace of tapering could drain liquidity from the market.

Cryptocurrencies fell in-line with equity markets with number two cryptocurrency ether falling about 6% over the last 24 hours to trade at $3,818 on Tuesday. Ether hit an over one-week low of $3670 in the last 24 hours.

US Fed meet awaited

“Crypto traders are still unsure if the bear market move is over. A large part of Wall Street is not doing anything until the Fed meeting and that is preventing some institutions from buying the current dip,” said Ed Moya, senior market analyst at brokerage firm OANDA.

Over the last one month, bitcoin has dropped over 27%, ether has fallen over 17% and Binance Coin has declined over 19%, as of early Asia trade.

BCH/USD

374.05 Price
+3.370% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

DOGE/USD

0.11 Price
+2.410% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

XRP/USD

0.52 Price
+8.960% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

ETH/USD

3,160.33 Price
+1.540% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

“The fear is that if rate hike expectations become too aggressive, Wall Street may finally get that long awaited pullback that will send markets to risk-off mode and punish the most profitable trade, which has been cryptos,” added Moya.

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Cryptocurrencies down

Top 10 blockchain networks Solana, Cardano and Polkadot fell 8.1% to $156.61, 6.7% to $1.23 and 9.1% to $26.2, respectively, in early Asia trade.

Meme coins Dogecoin and Shiba Inu fell 4.9% to $0.1282 and 6.8% to $0.00003321 on Tuesday.

Read more: Binance Singapore withdraws licence application

Markets in this article

BNB/USD
Binance Coin / USD
542.70 USD
6.19 +1.170%
BNB/USD
Binance Coin / USD
542.70 USD
6.19 +1.170%
BNB/USD
Binance Coin / USD
542.70 USD
6.19 +1.170%
BTC/USD
Bitcoin / USD
58671.10 USD
1078 +1.870%
ADA/USD
Cardano / USD
0.42554 USD
0.0101 +2.450%

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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.
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