There are more people buying and selling Bitcoin than Tesla, Apple, Microsoft and Amazon shares
Bitcoinsaw an average trading volume of $36.79 billion in the first 11 days of October.
- More people are buying and selling Bitcoin than they are trading in shares of
Tesla, Microsoft, Amazonand Apple— the world’s most valuable company.
- While Bitcoin is recovering from its September slump, technology stocks are not faring as well in the traditional stock market.
AdvertisementBitcoin had a rough September, but things seem to be looking up this month. There are thrice as many people trading in Bitcoin than the shares of Elon Musk-owned electric car company Tesla, IT behemoth Microsoft, e-commerce giant Amazon and even the world’s most valuable company — Apple.
According to data compiled by cryptocurrency trading simulator CryptoParrot, this reflects a rebound of buying and selling activity. Bitcoin was overdue for a correction after the fear, uncertainty and doubt (FUD) in the global market due to China’s crypto crackdown reiterations, the Evergrande crisis and the cryptocurrency’s legalisation in El Salvador.
Traditional stocks, especially in the technology sector, aren’t faring as well — even though none of them did any wrong specifically. Even they felt the pressure of the Evergrande crisis, but the resulting tailspin correction is yet to come to a stop. Meanwhile, it doesn’t help that US bond yields are rising, serving as a safer option for investors looking to park their money.
A surge in volume isn’t necessarily a good thing
Volume is only one of the guidelines used to determine the strength and weakness of a move — that can be either weak or strong as well as bullish or bearish. For instance, in Bitcoin’s case, a volume increase followed by a rise in price, followed by another increase in volume, can be perceived as a bullish signal — an indication that the price is likely to grow further.
However, CryptoParrot points out that the increase in Bitcoin’s trading volumes could also be an indication that investors who accumulated the asset in September — or ‘bought the dip’ — are cashing in with the cryptocurrency’s price recovering.
It should also be noted that investors can trade cryptocurrencies 24 hours a day, 7 days a week. Whereas stock markets are only open for a designated number of hours during weekdays.
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