The BTCUSD pair represents the Bitcoin price in USD and is one of the most popular crypto-to-fiat pairs used by traders for speculation purposes.
Bitcoin prices are determined by a range of factors. US regulators could announce regulations that could impact its market, for instance.
Institutional money could play a large role in 2021, leading to an increase in Bitcoin prices.
It is the most popular crypto-to-fiat pair
Bitcoin BTCUSD has gained immense interest from major institutions and individual investors, drawing the interest of big institutions as well as individual traders alike. A number of events shaped its price in 2021, such as Federal Reserve policy decisions and regulatory moves.
Bitcoin remains the world’s favorite crypto, even with rival digital coins emerging to challenge it. As the gold standard among cryptocurrencies, its price direction serves as a signal to all other major pairs; additionally it shares many of the same fundamental economic characteristics with gold while having a positive correlation to it.
Trading our CFD trading platform gives traders an effective way to speculate on its price movement without owning actual cryptocurrency, significantly lowering entry cost implications and increasing exposure up to 200 times.
It is a CFD
BTCUSD is one of the most sought-after CFDs on the market. CFDs are derivative financial instruments that allow traders to speculate and hedge against risks across a wide array of financial products using derivative instruments like CFDs. Furthermore, traders can utilize leverage to maximize profits; unlike futures trading platforms which often impose high minimum deposit and income requirements on investors.
Trading BTCUSD CFDs with their preferred CFD broker allows traders to open long or short positions based on their expectations of its price movement. CFD prices fluctuate quickly, offering traders opportunities for huge profits if they correctly predict its direction. Furthermore, trading Bitcoin CFDs provides advanced risk management tools such as stop loss orders and take profit orders.
It is a currency pair
Bitcoin came onto the scene as a revolutionary force in finance in 2009, symbolising decentralisation and financial independence. Since then, its market cycles have experienced extreme swings; currently nearing 50% retracements off all-time highs.
BTCUSD prices can be affected by many different variables, including regulation and currency fluctuation. The US Federal Reserve releases interest rate decisions eight times annually and any interest rate hikes can cause pressure to build in BTCUSD prices.
Crypto CFDs like BTCUSD are popular among Forex traders as they enable them to profit from both rising and falling markets. An excellent strategy for using BTCUSD trading is using the On-Balance Volume (OBV) indicator which combines price with volume analysis of the market – originally developed for stock and Forex trading but equally effective with BTCUSD CFD trading.
It is a crypto-to-crypto pair
Cryptocurrencies are decentralized forms of digital money that enable secure online transactions. Secured with cryptographic systems like hashing functions and elliptical curve encryption, they remain unanchored from central banks or governments and remain non-bank.
In 2020, Bitcoin saw a substantial upswing as institutional money began flowing into the crypto space. Major companies like Tesla and MicroStrategy Inc invested significantly to push up prices further while major regulatory bodies took steps towards regulating it.
BTCUSD, or Bitcoin against US Dollar, is a popular pair used by forex traders due to its enormous liquidity. You can even leverage it using spread betting which will lower both entry costs and rewards simultaneously.
It is a crypto-to-fiat pair
BTCUSD is an iconic crypto pair, pairing one of the world’s premier cryptocurrencies – Bitcoin – with one of the most influential fiat currencies – the US dollar. It shows how many dollars (the quote currency) it will cost to purchase one bitcoin (the base currency).
Like its counterparts, Bitcoin is decentralised and relies on blockchain technology for storage and verification, with only 21 million bitcoins expected to be mined by 2020.
Bitcoin prices are driven primarily by sentiment analysis and news that could potentially impact the US economy, with gold as its traditional safe-haven asset also playing a factor in pricing decisions. Major companies such as Tesla began investing large amounts into bitcoin during 2021, creating positive headlines that further spurred its rise.
