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.