Bitcoin price outlook: What comes next for the crypto king?
There is much discussion about whether to enter the bitcoin market now or wait for the market to improve. Many investors have already started looking into ways they can invest in crypto fearing that they will miss out on a golden chance. Today, we will review the market’s reaction to bitcoin’s recent rallies and examine what’s to come.
Just 5 months ago, the cryptocurrency markets exploded as bitcoin smashed all records amid the greatest rally in its history.
The driver behind the $60,000 prices was an announcement by PayPal that users would be able to purchase goods online with cryptocurrencies using its payment platform.
Since PayPal is the default payment provider for millions of businesses around the world, the announcement was considered as incredibly bullish for Bitcoin and its price skyrocketed above $60,000 soon after.
Then, by mid-April, bitcoin bulls managed to stage another rally following another announcement by Coinbase – one the largest and most popular cryptocurrency exchanges – who was about to go public and list its shares on the Nasdaq exchange.
Bitcoin is now trading below the $50,000 mark, however, even though we are more than halfway through the year, the king of cryptos remains as volatile as ever. In fact, cryptocurrency experts and analysts maintain the view that Bitcoin is to reach $100,000 by 2022, a significant rise from its current record high of $63,798 in April 2021.
How to trade Bitcoin
Investors who seek to benefit from bitcoin’s volatility can register a trading account with CMTrading, which allows them to speculate on bitcoin’s price movements without the hassle of cryptocurrency wallets and fiat-to-crypto conversions.
CMTrading clients can simply open a BUY or SELL position according to the market direction and generate profits instantly – as long as the market moves in their favor.
This is because CMTrading clients trade bitcoin CFDs, which are derivative contracts that mirror the price of bitcoin on the live market.
By trading Bitcoin CFDs, you can earn significant returns without investing large sums in a highly volatile market. By opening a buy position on the trading platform, you have the opportunity to profit if the price of Bitcoin goes up as expected.
The fact that you can also sell CFDs means you can profit from falling prices even if bitcoin goes down, whereas this isn’t possible when buying Bitcoin directly from a cryptocurrency exchange.
In addition, CMTrading clients can gain exposure to a wide range of exciting cryptocurrencies such as Ethereum, Litecoin, Ripple, Cardano, Polkadot, Dogecoin, Monero, Stellar, Uniswap as well as Bitcoin Cash.
Discover more opportunities with CMTrading
CM Trading offers more than 150 tradable assets including the most popular cryptocurrencies available in the financial markets. CMTrading clients get access to a wide range of financial instruments, exceptional trading conditions and robust safety and security under the auspices of the Financial Sector Conduct Authority (FSCA) in South Africa.
Being a retail brokerage that specializes in CFDs (Contracts for Difference), CMTrading provides clients with unique advantages such as 5:1 leverage on all cryptocurrencies, which allows traders with smaller accounts to gain exposure to much larger positions. This translates to substantially higher profit potential, however, it should be noted that leverage also increases your exposure to downside risk.
To help counter the downside risks associated with leveraged trading, CMTrading also offers negative balance protection, thereby guaranteeing that potential losses will never exceed a client’s invested capital.
If you are interested in learning more about how you can take advantage of price movements in the best-performing cryptocurrencies, Open your CMTrading account below to enjoy a unique offering of innovative services and diverse account types that is suitable for both beginner and experienced traders.