Types of Cryptocurrencies CFD Available on Phillip MT5
Note: Similar to the underlying Cryptocurrencies, Cryptocurrencies CFD are also highly volatile and come with high-risk. Hence, the prices of Cryptocurrencies CFD are subject to sudden fluctuations due to market sentiments or unexpected market events. As CFDs are leveraged, market volatility and leverage may result in increased profits or significant losses depending on how the market moves. Cryptocurrencies are not legal tender are currently not subjected to any regulatory requirements or supervisory oversight by the Monetary Authority of Singapore (MAS). Hence, the safeguards afforded under MAS’ regulatory framework will not apply to consumers dealing with unregulated products, such as CFDs on Cryptocurrencies.
Customers are advised to trade Cryptocurrencies CFD only after gaining the relevant knowledge and fully understanding the risks associated with the product. To ensure that you fully understand the risks and the costs involved, please refer to the Risk Fact Sheet and Risk Disclosure Statement.
Inflation fears revive worldwide search for inflation hedge, potentially beneficial for cryptocurrencies
📈 BTC | $57,072 (+784, +1.4%)
📈 ETH | $4,182 (+170, +4.2%)
📈 XRP | $1.5 (+0.058, +4.0%)
📈 LTC | $386 (+20, +5.4%)
Investors are closely monitoring confidence in the US dollar as inflation fears mount. Hedge fund and forex titan Stanley Druckenmiller came out on CNBC to state his lack of faith in the current easy monetary policy. After dismissing the future of the Euro and the Chinese Yuan as future replacements for the dollar, Bitcoin bulls were delighted to hear Druckenmiller opine that a possible replacement would be a “crypto-derived ledger system”.
Froth in the market? A 2-day old cryptocurrency (there is a serious project behind it however) – Internet Computer (ICP) has reached a $46B market cap, while a “Dogecoin killer”, Shiba Inu coin (SHIB) has now achieved more that +2,000,000% growth in the year-to-date (has no serious project behind it).
Ethereum transaction fees – long a pain point for the project, has been sent to all-time highs largely thanks to demand for Ether tokens, Dogecoin, and Shiba Inu coin. Binance itself “ran out of ETH deposit addresses due to SHIB”, which was stated to have never happened before for ERC20 tokens.
Binance suspends withdrawals temporarily, helps to trigger market correction
📉 BTC | $55,927 (-2,674, -4.6%)
📈 ETH | $3,929 (+6.8, +0.2%)
📉 XRP | $1.43 (-0.16, -10%)
📉 LTC | $360 (-32, +8.2%)
Bitcoin touched a local low of $53.4K yesterday, the second time in May so far. Meanwhile, Bitcoin miners have been holding their Bitcoin instead of selling them causing buying demand for Bitcoin to exceed selling this week.
Investment banking giant UBS is reportedly working to offer wealthy clients exposure to cryptocurrencies, though its rollout may be months away at best. This would see it join the ranks of Goldman Sachs, BNY Mellon, Morgan Stanley, and JP Morgan.
NFT trading volume (and value) may be off the highs seen in February, but more companies in the arts and sports scenes are announcing exploration into NFTs and cryptocurrencies for things such as ticket issuance and fan engagement. Just a week ago, the Ultimate Fighting Competition (UFC) announced a partnership with one such project (Chiliz) based on the Ethereum blockchain.
Month of May is all about Ethereum, but look out for Bitcoin’s new upgrade
📉 BTC | $58,273 (-598, -1.0%)
📈 ETH | $3,932 (+25, +0.6%)
📉 XRP | $1.5 (-0.031, -1.7%)
📈 LTC | $388 (+40, +11.6%)
Bitcoin may receive a network upgrade by November this year, should a voting exercise among miners pass by the 11th of August. The Taproot upgrade will potentially reduce transaction fees and improve transaction privacy, and is likely to be the most significant update to Bitcoin in years.
Work on Ethereum’s blockbuster London hard fork (July 2021) will begin this month, with forking on the test nets being the first order of business. Such projects are closely watched by traders, as they have the potential to move Ethereum’s price should any delays or faster-than-expected progress occur.
The London hard fork scheduled for July is notably set to begin destroying Ether tokens in every transaction, possibly causing a system where more Ether tokens are burned than created. Ethereum currently does not have an issuance limit.
Bitcoin books full-day gain of +16% after visiting 7-week low
📈 BTC | $53,738 (+3,557, +7.1%)
📈 ETH | $2,505 (+111, +4.6%)
📈 XRP | $1.35 (+0.27, +25%)
📈 LTC | $245 (+14, +6.3%)
Jamie Dimon of JP Morgan has come full circle – the once openly anti-Bitcoin CEO will now allow clients to invest in an actively managed Bitcoin fund – a first for the industry.
Crypto mega-exchange Binance shows no sign of slowing down, as it moves ahead to list tokenised Apple, Microsoft, and Microstrategy stocks. Tokens allow investors to purchase as little as 1/100th of a stock and still receive dividends (but no voting rights).
Tesla sold around 10% of its Bitcoin holdings in the last quarter for around $272M, helping it add to the company’s gross margins.
Crypto markets still off from earlier highs as regulatory worries weigh on sentiment
📈 BTC | $50,915 (+810, +1.4%)
📈 ETH | $2,416 (+194, +8.7%)
📈 XRP | $1.11 (+0.067, +6.4%)
📈 LTC | $233 (+8.6, +3.8%)
Short bets on Bitcoin are increasing as futures contracts saw negative funding rates again. While this makes it expensive to hold shorts, history has shown that this does not necessarily indicate a market bottom.
Turkey’s nigh-unregulated crypto market (estimated by some to be the 5th largest globally) is threatening collapse after a crypto exchange (Thodex) founder absconded with $2B in customer funds. Regulators are looking into a second crypto exchange (Vebitcoin), and has since detained its CEO. Authorities have signalled that they are aiming for regulation however, rather than an outright ban.
South Korea on the other hand, hinted at a total ban on crypto as its top regulator floated the idea of shutting down all 200 of the country’s crypto exchanges by September if they fail to apply for the relevant AML licenses (none have applied so far).
Altcoins dominating as Bitcoin dips to $50.5K, a -18% dip in 7 days
📉 BTC | $51,725 (-2,239, -4.2%)
📈 ETH | $2,409 (+24, +1.0%)
📉 XRP | $1.18 (-0.122, -9.4%)
📉 LTC | $252 (-5, -1.9%)
Bitcoin Dominance has dropped further to 50%, its lowest level in three years. During such periods, altcoins tend to outperform while Bitcoin stagnates during what many call “altcoin season”.
There is now five times more traffic on the competing Binance Smart Chain as compared to the Ethereum network. The Ethereum network is experiencing record traffic but high network congestion as well, driving users to competitors as transaction fees soar.
Ethereum miners recently raised the gas limit for transactions (translation: higher gas limit = more and cheaper transactions on average) for only the 7th time ever. Gas limit increases are typically only feasible after improvements to the blockchain, as developers race to contain rampaging Ethereum transaction fees while working on Ethereum v2.0 in parallel.
Bitcoin technicals prompting Wall Street to issue bearish near-term outlook
📉 BTC | $53,980 (-2342, -4.2%)
📈 ETH | $2,386 (+51, +2.2%)
📉 XRP | $1.31 (-0.091, -6.5%)
📉 LTC | $258 (-7, -2.8%)
Bitcoin has fallen through the 50-day moving average for four days consecutively, sparking a flurry of coverage from analysts all over Wall Street who have been increasingly covering the cryptocurrency as it remains one of the best-performing assets this year (for now). The most immediate concern has been a potential exodus of momentum-based traders from Bitcoin positions as key momentum indicators turn bearish.
Speculation is building that as investors gain more options to get indirect exposure to Bitcoin – such as through buying CoinBase stock or Canadian Bitcoin ETFs (the USA has no approved ETFs), Bitcoin itself will receive less buying momentum.
Though unlikely to be a trigger, Bitcoin transaction fees have just surpassed the all-time high of around $56 that was last seen… right before the 2018 Bitcoin crash. The spike in fees may be temporary however, given that Chinese miners (they make up around 60%+ of the world’s Bitcoin mining power) have been facing power outages in recent days.
Crypto adoption rolls on as more companies announce plans to hold crypto
📈 BTC | $56,734(+1,801, +3.3%)
📈 ETH | $2,358 (+243, +11.5%)
📈 XRP | $1.41 (+0.1596, +12.8%)
📈 LTC | $268 (+14, +5.5%)
Time Magazine announced the acceptance of cryptocurrencies as a payment method for digital subscriptions, where those paying using crypto will receive additional benefits. The 98-year old magazine is also being commissioned by Grayscale to produce a video series on cryptocurrencies, and will be paid in Bitcoin, that it will hold on its balance sheet.
Wework announced plans to accept cryptocurrencies as payment, also with no plans to convert received tokens into fiat currencies. Coinbase, who had a blockbuster IPO recently, will be their first tenant to pay in crypto.
Venmo (owned by Paypal) announced that their 70M users will now be able to buy and sell cryptocurrencies. Payments will not be allowed however, as the new functionality is aimed as an introduction for those new to the market.
Get Started on CFD Trading
What are CFDs
CFD is an agreement between two parties to settle the difference between the opening and closing prices of the contract. CFDs allow customers to participate in the price movement of an underlying product, such as indices, commodities and shares, without actually owning the asset.
- Trade in both the bull and the bear markets
The ability to enter a long and/or short position allow traders to take advantage of both rising and falling markets.
- Smaller barrier to entry
CFDs typically have flexible and smaller contract sizes. This means that traders will be able to enter into a CFD contract with a modest amount of capital.
- No expiration date or risk of delivery
Unlike futures which commonly have a fixed expiration date, CFDs allow traders to perpetually hold the position(s). CFDs are cash settled, no need to worry about the delivery of the underlying asset.
Free live prices, data and real-time charting with sophisticated charting tools
24/5 service support
Zero commission and competitive spreads
Relevant information on CFD Trading
Click here to for more information on the CKA assessment to trade CFDs.
For more information on CFD trading, please give us a call at (65) 6538 0500 or send an email to our Client Service Desk at email@example.com.