Bitcoin
Retail Traders Stay Out of Bitcoin Rally
By Medha Singh
(Reuters) – What happened to the army of retail traders who used to power bitcoin’s biggest rallies?
US crypto exchange Coinbase reported just $56 billion in consumer trading volumes in the first quarter of 2024, as bitcoin jumped to record levels near $74,000.
While this represents an incipient recovery in retail interest – almost double the level of the final quarter of last year – it is far below the quarterly average of $133.75 billion during the last comparable recovery in 2021.
The retail investor was in charge of that wild ride of 2021, as COVID lockdowns, cheap money and personal savings drove up “meme” stock prices and generated bouts of intense FOMO, or fear of missing out. On the other hand, the latest rally was a more solemn institutional affair, driven by the birth of bitcoin exchange-traded funds in the US.
“It’s the million-dollar question in crypto right now – when will retail traders return?” said Michael Rinko, analyst at Delphi Digital.
In another sign of retail retreat, Google trends data shows that search interest in the term “bitcoin” in March was just half the peak in 2021.
Some small investors are still weathering the chills of the more than two-year-old crypto winter when bitcoin remained weak at levels between $20,000 and $30,000.
Billions of client funds were also trapped in the implosion of high-profile crypto companies, including Three Arrows Capital, Celsius Network and FTX, whose founder Sam Bankman-Fried was sentenced to 25 years in prison for fraud.
“The main force behind the reduction in activity stems from lessons learned throughout the harrowing year that was 2022,” said Vetle Lunde, analyst at K33 Research.
“The contagion and collapse of a large portion of retail-oriented credit platforms illustrated that considerable risks were hidden behind the attractive yields.”
Some market participants assess that bitcoin, which represents more than half of the $2.26 trillion digital asset market capitalization, will be hit by a period of rotation as investors take profits from the currency and decide to buy altcoins. riskier, like no. 2 cryptoether and others.
In fact, Ether lags behind its biggest rival Bitcoin and has yet to surpass its 2021 peak.
“Rather than just blindly jumping into crypto on whatever seems to be hot at the moment, people are now much more focused on what is a safe and secure asset to invest in,” said John Glover, chief investment officer at the crypto trading platform. Ledn crypto loan.
It remains to be seen if or when speculative crypto traders will return to the market in force.
The story continues
At the moment, bitcoin’s drop to $62,809, 15% below its mid-March high, is serving as a reminder of the sharp volatility and risk that comes with the asset.
“The meme in crypto is: Bitcoin needs to hit $100,000 for retail to come back,” said Rinko of Delphi Digital. “Who knows if that’s the magic number, but we need to get to a number that really ignites FOMO.”
(Reporting by Medha Singh in Bengaluru; Editing by Vidya Ranganathan and Pravin Char)
Bitcoin has lost out on an asset rally fueled by positive comments from the Federal Reserve, while a tight US election race casts doubt on whether Donald Trump will get the chance to implement his pro-crypto agenda.
The digital asset fell 2.4% on Wednesday, following a Fed-fueled surge in an index of megacap tech stocks Magnificent Seven by one of the largest margins in 2024. The token retreated further on Thursday, changing hands at $63,750 as of 6:10 a.m. in London.
Bitcoin
‘This is huge’ — Billionaire Mark Cuban issues ‘incredible’ Bitcoin and crypto prediction amid price slump
Bitcoin
Bitcoin
came back with a vengeance this year when former President Donald Trump Cryptocurrency boosts US presidential election in November with ‘revolutionary’ plan.
The price of bitcoin has surged to more than its all-time high in recent months, surpassing $70,000 per bitcoin and triggering a wave of mega-optimistic predictions about the price of bitcointhough it fell again this week, falling below $65,000 after the Federal Reserve kept interest rates steady.
Now, as Elon Musk suddenly breaks his silence on bitcoin and cryptocurrenciesBillionaire investor Mark Cuban called a California plan to digitize 42 million car titles using blockchain an “incredible step forward” and “huge” for cryptocurrencies.
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Mark Cuban, famous Shark Tank investor and billionaire owner of the NBA team Dallas Mavericks, has… [+] called a cryptocurrency update “amazing” amid bitcoin’s price slump.
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The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain, it was reported by Reuters, through technology company Oxhead Alpha on the Avalanche blockchain and designed to detect fraud and facilitate the securities transfer process.
“This is an incredible development for crypto,” Cuban, best known as an investor on TV’s Shark Tank and owner of the Dallas Mavericks NBA team, posted on X, joking that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler could sue the state as part of his hostility toward cryptocurrencies and blockchain technology.
“The reason this is huge for crypto is because people who hold the tokens will have an app with an Avalanche wallet,” Cuban said. “Tens of millions of Californians having and using a crypto wallet in the next five years, or however long it takes, normalizes the use of wallets and crypto.”
John Wu, president of Avalanche developer Ava Labs, told Reuters that California’s DMV is “creating a wallet that you can download on your phone.”
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Bitcoin’s price has rallied this year, triggering a wave of bullish bitcoin price predictions from… [+] people like billionaire Mark Cuban.
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Last month, Cuban predicted that if the US dollar falls as the global reserve currency, bitcoin could become “a global ‘safe haven’” and a “global currency.” potentially sending the price of bitcoin to a much higher level.
According to Cuban, bitcoin could become what its most ardent supporters “envision” — a means “of protecting our economies… This is already happening in countries facing hyperinflation.”
The price of bitcoin has skyrocketed over the past year, largely due to the world’s largest asset manager, BlackRock, leading a bitcoin attack on Wall Street.
Bitcoin
Bitcoin (BTC) miner Riot Platforms (RIOT)’s second-quarter loss widens to $84.4 million as costs rise
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At a national bitcoin conference in Nashville, Donald Trump finally laid out some of his crypto policy proposals, including a long-awaited part of his plan — building a strategic bitcoin reserve. CNN’s Jon Sarlin explains what it is and why the crypto industry wants it.
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