BTC/USD CFD Trading
The BTC/USD pair consists of the most traded cryptocurrency and fiat currency. This attracts investors and traders and creates exciting price fluctuations. Interested? Start trading BTC/USD CFDs with FXOpen today!
What Is BTC/USD CFD Trading?
BTC/USD CFD trading refers to the trading of Contracts for Difference (CFDs) based on the price fluctuations of Bitcoin against the US dollar. When you trade BTC/USD CFDs, you don't actually buy or own Bitcoin. Instead, you enter into a contract with a broker that pays the difference between the asset's price at the time you open the contract and its price at the time you close it.
The BTC/USD rate reflects how many US dollars you will receive if you convert 1 BTC to USD. If you want to calculate how many dollars you need to buy Bitcoins, you can use a BTC to USD calculator.
Bitcoin is a popular and highly traded cryptocurrency. It's known for its decentralised nature and its potential for both substantial gains and significant market volatility. The US dollar stands as a key reserve currency globally and is extensively utilised in international trade and financial transactions.
At FXOpen, you can trade various cryptocurrencies via CFDs, including Bitcoin, with low commissions and spreads from 0.0 pips.
To get the most up-to-date insight into the recent performance of this pair, check the BTC/USD chart on the TickTrader platform. It can help you make informed decisions at home or on the go – no matter if you use the desktop version, web terminal, or mobile app. Our real-time chart includes the very latest prices, historical data, and technical analysis tools to help guide your next trade.
BTC/USD Historical Performance
Here are the most important price swings of the BTC/USD pair.
Bitcoin was created in 2009, and during its early years, it had little to no monetary value.
From 2013 to 2017, Bitcoin experienced significant volatility. In late 2013, it reached over $1,000 before experiencing a sharp correction. The year 2017 was marked by remarkable growth, with Bitcoin reaching close to $20,000 in December. However, it couldn't sustain these levels and experienced a substantial correction in the following months.
In 2020, Bitcoin began a new bull market phase, driven by growing institutional interest, macroeconomic factors, and increased adoption. The market reached a new all-time high in December, surpassing its 2017 peak.
The uptrend continued until March 2021, when Bitcoin cost $60,000. The market corrected soon but reached a new peak a few months later – in November, 1 BTC to USD cost 69,000. A new peak was followed by a dramatic downtrend – BTC to USD price plunged below 16,000.
Major Factors That Affect the BTC/USD Rate
The BTC/USD rate may be influenced by a variety of factors; the most important ones are:
The cryptocurrency market is highly volatile and depends on market sentiment. Positive news, increased adoption, and optimism about the future of Bitcoin can lead to a surge in demand and higher prices. Negative news, regulatory concerns, or security breaches can lead to a decline in sentiment and lower rates.
Bitcoin's limited supply of 21 million coins creates scarcity, which can drive up its rates when demand increases. Bitcoin undergoes a halving approximately every four years, reducing the rate at which new Bitcoins are created. This can create supply shocks and influence the market.
Economic events, such as inflation, monetary policy decisions, and currency devaluation, can drive investors to seek Bitcoin as a potential hedge against economic instability. Events like geopolitical tensions or global economic crises can also drive investors to seek potential safety in Bitcoin.
Liquidity in the BTC/USD market can impact the market stability and the ability to enter or exit trades at desired levels.
Improvements or vulnerabilities in the Bitcoin network and infrastructure can affect investor confidence and price movements.
Important: At FXOpen UK, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules. They are not available for trading by Retail clients.