Traders interested in speculating on the crypto-currency market are not put off by Mt Gox’s closure
LeapRate Exclusive: Sources close to various forex brokers in the industry have confirmed that as the debacle of the former leading Bitcoin exchange Mt Gox unfolds, interest amongst customers to trade the digital currency has been increasing. In fact the CFDs that several companies are already offering for Bitcoin trading are becoming a sort of a less risky and certainly more convenient way to trade on the Bitcoin market.
As long as there is enough liquidity at the brokerages and they continue to successfully manage counter-party risks it definitely seems that holding funds at a regulated entity is a much better deal than to operate with unregulated Bitcoin exchanges. For now forex brokerages seem to be a viable alternative to speculate on the crypto-currency markets and they can save a lot of time and nerves to their customers that are desiring to reward them with bid/ask spreads.
The closure of Mt Gox could be the latest trigger that drives Bitcoin speculators to use safer alternatives. As the exchange has shut down a staggering amount of Bitcoins and cash have vanished somewhere. While prices on other exchanges have reacted quite violently in the past 24 hours, we are seeing a 20% rebound from today’s lows around $400 with prices currently trading above the $500 mark.