Sunday, May 12, 2019

Bitcoin Going Completely Nuts Over the Weekend

I've noticed that in recent days Bitcoin has gone up starting at around 6pm US Eastern time when all stock markets in the World apart from New Zealand are closed. Of course, this is the afternoon and evening on the US West Coast. So, I figured that it was driven by retail investors in the U.S. Now this weekend, that trend has continued in dramatic fashion:

Bitcoin is up almost $700 on Friday's close. Luckily, I am long Bitcoin futures. It certainly makes me wary of ever being short Bitcoin over the weekend. Bitcoin has now popped up to be my 22nd best investment in dollar terms ever - I've been investing since 1996... Just about to overtake Pendal Property Investments. Anyway, anything could happen by 10am Monday Eastern Australia time when the futures market re-opens...

Obvious solution to going short over the weekend is to have an account with a cash Bitcoin exchange that is open over the weekend and buy Bitcoin if the stop loss level is reached. What such exchanges allow stop orders?

Bitcoin now up $1000 since Friday. If this persists till Monday it will be the biggest daily move in percentage terms in my dataset, possibly since the futures market open at the end of 2017. Plus 500 allows CFD trading 24/7. There are huge buy-sell spreads, so this would only be used as insurance. You can place conditional orders, such as buy only when the price reaches a certain level.

I tried the demo platforms at Plus500 and eToro. eToro appears to be very limited and geared to novice traders. There were strong restrictions on the levels of orders that could be placed. So, Plus 500 seems to be the only real option that offers Bitcoin CFD trading 24/7.

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