BTCUSD is the price of one bitcoin in US dollars. A bitcoin CFD lets you trade that price, up or down, without owning any bitcoin, opening an exchange account or managing a wallet. It behaves differently from currencies: moves of 3% to 5% in a day are ordinary, the underlying market never closes, and the price responds to institutional flows, interest rates and risk appetite as much as to anything in the crypto world itself.
Key takeaways
- Bitcoin’s supply is capped at 21 million coins. New issuance halves roughly every four years; the most recent halving was in April 2024.
- US spot bitcoin exchange-traded funds began trading in January 2024 and have become a major source of demand.
- Bitcoin trades seven days a week, so a CFD that is closed at weekends can gap when it reopens.
- Profit or loss on a CFD is price change × contract size × lots; no coins change hands.
- Leverage on crypto CFDs is usually far lower than on currencies because of volatility.
| What the quote means | US dollars per bitcoin |
|---|---|
| Supply cap | 21 million BTC |
| Launched | January 2009 |
| Halving | About every four years; most recent April 2024 |
| Underlying market hours | 24 hours a day, 7 days a week |
| Contract size, 1.00 lot | Shown in the symbol specification in MetaTrader 5 |
| Typical daily move | 3–5% |
| Symbol at Marketsall | BTCUSD |
How does a bitcoin CFD work?
| Step | Example |
|---|---|
| Open | Buy 0.10 lots at $100,000 (exposure: 0.1 BTC, $10,000) |
| Price moves | Bitcoin rises 4% to $104,000 |
| Profit | $4,000 × 0.1 = $400, before costs |
| If it falls 4% | Loss of $400, before costs |
| Margin | Depends on leverage for crypto. |
Because a CFD is a contract with the provider, you can sell first and buy back later, which lets you take a view that the price will fall. The mechanics are the same as for any CFD; the difference is the size and speed of bitcoin’s moves. The contract size per lot varies by provider, so check the contract specification before trading.
What moves the bitcoin price?
| Driver | How it tends to work | What to watch |
|---|---|---|
| ETF and institutional flows | Daily inflows to and outflows from spot bitcoin ETFs have become a visible measure of demand. | Published ETF flow data |
| Interest rates and liquidity | Lower rates and easier financial conditions have tended to support bitcoin, like other risk assets. | FOMC meetings, US CPI |
| Risk sentiment | Bitcoin often moves with technology shares in sell-offs. | do bitcoin and the Nasdaq move together, risk-on vs risk-off |
| Supply schedule | Each halving cuts new supply; its effect is debated and may already be priced in. | Halving dates |
| Regulation | Approvals, bans, taxes and enforcement actions can move the price sharply. | US, EU and Asian regulatory news |
| Leverage in the crypto market | Large leveraged positions on crypto exchanges can be liquidated in cascades. | Funding rates, open interest |
What is the bitcoin halving?
Bitcoin is created as a reward to the computers that process transactions. Every 210,000 blocks, roughly every four years, that reward is cut in half: from 50 bitcoin per block in 2009 to 3.125 after the April 2024 halving. It reduces the rate of new supply, not the existing supply. Past halvings were followed by large rallies, but with only a handful of examples and many other forces at work, no reliable pattern can be drawn.
| Date | Reward per block after |
|---|---|
| November 2012 | 25 BTC |
| July 2016 | 12.5 BTC |
| May 2020 | 6.25 BTC |
| April 2024 | 3.125 BTC |
| Next, expected around 2028 | 1.5625 BTC |
Weekends and gaps
The bitcoin market does not close. If a CFD provider offers bitcoin only on weekdays, the Monday price can open far from Friday’s close, and stop orders fill at the first available price. If the provider offers weekend trading, liquidity is thinner and spreads may be wider. Either way, overnight financing on crypto CFDs is usually higher than on currencies and may be charged every calendar day. See gap risk.
Bitcoin vs gold vs the Nasdaq 100
| Feature | Bitcoin | Gold | Nasdaq 100 |
|---|---|---|---|
| Typical daily move | 3–5% | 1–2% | 1–2% |
| Market hours | 24/7 | Weekdays, nearly 24 hours | Weekdays; cash session 6.5 hours |
| Income | None | None | Small dividends |
| Main short-term drivers | Flows, liquidity, risk appetite | Real yields, the dollar | Earnings, rates |
| Read more | This guide | XAUUSD guide | Nasdaq 100 guide |
What it costs to trade Bitcoin as a CFD
A bitcoin CFD tracks the price of bitcoin in US dollars. You do not own any bitcoin, need no wallet and can take a short position. See what a CFD is and crypto CFDs vs buying crypto.
| Cost | When it applies | Note for Bitcoin |
|---|---|---|
| Spread | Every trade, at entry | Wider than on major currency pairs, in percentage terms |
| Commission | Depends on instrument and account type | Shown in the symbol specification in MetaTrader 5 |
| Swap / overnight financing | Positions held past the daily rollover | Crypto CFDs usually carry a higher overnight financing rate than currencies, and it may be charged for weekend days. |
| Slippage | Fast markets, gaps, news | Common in fast moves and at weekends when liquidity is thin |
Key risks
Extreme volatility. Falls of 10% or more in a day have happened many times.
Weekend and gap risk. The underlying trades when some CFD markets are closed.
Financing costs. Holding a crypto CFD for weeks can be expensive.
Leverage. Even low leverage magnifies large moves. See how leverage increases trading risk and position sizing.
Risk warning. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on this website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money.
Frequently asked questions
How does bitcoin CFD trading work?
A bitcoin CFD is a contract with a provider that pays out the change in bitcoin’s price. You choose to buy or sell, and your profit or loss is the price change multiplied by the contract size and the number of lots. You never own bitcoin, so you need no wallet, and you can take short positions.
What does BTCUSD mean?
BTCUSD is the price of one bitcoin in US dollars. BTC is the common ticker for bitcoin and USD is the US dollar. A quote of 100,000 means one bitcoin costs $100,000.
What moves the price of bitcoin?
Flows into and out of spot bitcoin ETFs, interest rates and financial liquidity, general risk appetite, regulation and the build-up and unwinding of leverage on crypto exchanges. The halving, which cuts new supply every four years, is also widely watched.
What is the bitcoin halving?
The halving is a built-in rule that cuts the reward for creating new bitcoin in half every 210,000 blocks, about every four years. The most recent halving, in April 2024, reduced the reward from 6.25 to 3.125 bitcoin per block. Total supply is capped at 21 million.
Can you short bitcoin with a CFD?
Yes. A CFD lets you sell first and buy back later, so you profit if the price falls and lose if it rises. Losses on a short position can be large if bitcoin rallies sharply.
Related reading
Holding bitcoin into the weekend
If a bitcoin position might stay open over a weekend, look up its overnight financing first, as where to find swap rates on MT5 shows, and read how macroeconomic conditions affect bitcoin for the rates-and-liquidity backdrop.
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