There are more people buying and selling Bitcoin than Tesla, Apple, Microsoft and Amazon shares.
- In the first 11 days of October, Bitcoin had an average trading volume of $36.79 billion.
- More people are buying and selling Bitcoin(BTC) than they are trading in shares of Apple, Amazon, Microsoft and Tesla — the world’s most valuable company.
- While Bitcoin is recovering from its September lows, technology firms in the traditional stock market are not faring as well.
Bitcoin had a difficult September, but it appears like things are improving this month. Bitcoin is traded by three times as many people as Elon Musk's electric vehicle company Tesla, Microsoft's IT behemoth, Amazon's e-commerce behemoth, and even Apple, the world's most valuable company.
This reflects a resurgence in buying and selling activity, according to statistics provided by cryptocurrency trading simulator CryptoParrot. Fear, uncertainty, and doubt (FUD) in the global market caused by China's crypto crackdown, the Evergrande crisis, and the cryptocurrency's legalisation in El Salvador were all ripe for a correction.
Traditional equities, particularly in the technology sector, aren't faring as well, despite the fact that none of them did anything wrong. The Evergrande issue exerted pressure on them as well, but the accompanying spiral correction has yet to come to a halt. Meanwhile, rising US bond yields, which serve as a safer option for investors looking to store their money, aren't helping matters.
An increase in volume isn't always a good thing
Volume is just one of the criteria used to assess the strength and weakness of a move, which can be bullish or bearish and weak or powerful. For example, in the case of Bitcoin, an increase in volume followed by a rise in price and then another increase in volume might be interpreted as a bullish signal, indicating that the price is likely to rise further.
However, according to CryptoParrot, the increase in Bitcoin trading volumes could indicate that investors who bought the cryptocurrency in September — or 'bought the drop' — are cashing in now that the price has recovered.
It's also worth noting that investors can trade cryptocurrencies at any time of day or night, seven days a week. During the week, stock markets are only open for a certain number of hours.