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Wrapping Up the 2021 Trading Year

Wrapping Up the 2021 Trading Year

Wrapping Up the 2021 Trading Year

In many ways 2021 was a wild ride, including the markets, from stocks to cryptocurrency, and more, the volatility kept traders on their toes. Time and again, investors brushed off news that could’ve sent the markets into a tailspin.

High inflation, supply chain issues, and even sceptics who predicted a correction that never materialised—none of these events stopped the 2021 markets from setting new records. Not even the global COVID-19 pandemic, or its currently raging Delta and Omicron variants.

Stay tuned and continue reading to discover even more about the recap of the 2021 market. Let’s begin with reviewing the wildest of them all.

Bitcoin

Bitcoin began 2021 with a bang, immediately setting new highs as more investors – especially big-name Wall Street institutions – expressed interest in it as a speculative asset, or a hedge against growing prices. Through November, ETFGI, a research and consulting firm, reported that over $20 billion had been invested globally in crypto exchange-traded products; a new record.

Since achieving an all-time high of around $69,000 in early November, Bitcoin has had a rough patch. Analysts attribute some of the volatility to the prospect of more regulatory oversight worldwide. As the crypto community has grown this year, it’s also losing ground to lesser-known upstarts.

Looking ahead, many investors anticipate prices to recover and eventually reach new highs in classic “crypto-to-the-moon” fashion. The market’s wild fluctuations suggest that it might swing either way.

Tesla Stock

Tesla stock has been on fire for a long time. Its share price rose by 695% during 2020, making Elon Musk the world’s richest person. On November 4, 2021, the closing price of the shares was $1,2229.91, an all-time high. And the corporation continues to do all in its power to boost its stock price.

For example, Tesla intends to expand quickly, increasing deliveries by more than 50% each year over a multi-year period. New production facilities are scheduled to launch by 2022 in Berlin to boost short-term growth

While Tesla’s stock price has soared, some are concerned that this might be a speculative bubble, which may develop in financial markets, particularly near the end of bull markets.

Crude Oil

The energy complex traded higher toward the end of the session on confidence that post-pandemic demand would strengthen further in the coming months. As of October 25, Brent crude was trading at $86.70 a barrel, a three-year high. U.S. West Texas Intermediate (WTI) futures rose 25 cents to $81.59 after hitting a low of $80.20 earlier in the session.

Investors are anticipating an OPEC+ meeting on January 4, 2022, to decide whether to proceed with a planned 400,000 barrels-per-day production rise in February. Despite Omicron, OPEC+ stayed the course at their most recent meeting and decided to increase output in January.

According to the U.S. Commodity Futures Trading Commission, money managers increased their net long positions in U.S. crude futures and options in the week ending December 21.

CFD Trading Explained

While stock trading is hugely popular among traders, the high capital requirements and limited leverage is given by stockbrokers can be expensive. This increased capital requirement has raised the popularity of Stock CFD trading (Contracts for Difference). A Contract for Difference does not require physical ownership of the given stock. For instance, CFD(s) on Apple stock are essentially an agreement between a buyer and a seller to swap the difference in Apple stock prices at a set time.

Stock CFD(s) are traded in predetermined quantities and are based on the value of 100 shares in a given company. Stock CFD(s)provide several benefits to traders, one of which is the higher leverage available. As with any other transaction, leverage can magnify gains and losses, so traders should proceed with caution.

Trading with tixee

tixee is all about connecting traders to global markets with a combination of tools and account options that far exceed many traders’ expectations. It doesn’t matter if you use a computer or a smartphone to trade as tixee provides a range of platform types fit for each level of trader from the advanced MT5, to easy-to-use WebTrader and more. Sign up with tixee today to explore a range of possibilities and tools at your fingertips.

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