A familiar face is back in the cryptocurrency ecosystem. Enticed by the prospect of quick profits in a rapidly appreciating asset class, retail investors are returning for a second innings to the crypto ecosystem. The 2017 bull run in crypto markets was largely powered by retail investors. At that time, their entry helped bump Bitcoin (BTCUSD) into mainstream consciousness and spiked its price volatility. But the circumstances this time around may be different.
More Users and Trading Volumes
Following a price coma that lasted more than two years, Bitcoin has become a popular investment tool with mainstream investors thanks to digital platforms. Google searches for Bitcoin have reached crypto mania levels, and trending Twitter topics have helped highlight price surges for the cryptocurrency. eToro, a crypto trading platform, reported the addition of 200,000 new users in the first week of this year. Out of that figure, the company stated that it had 61% and 49% more unique Bitcoin and Ether (ETHUSD) holders as compared to last year. Not surprisingly, trading volumes at the Israel-based firm jumped by 10 times as compared to the same period from last year. Read more…..
Chart of the Day
Retail investors have doubled their trading activity during the pandemic. Online brokers cite people spending more time at home, market volatility, and zero-dollar commissions. According to TD Ameritrade, some of the most popular stocks among retail investors last week were Tesla, Apple, Beyond Meat, Disney and Microsoft, and they’re also sticking with American Airlines and Delta. J.J. Kinahan, chief market strategist at T.D. Ameritrade, and CNBC’s Mike Santoli join “Squawk Box” to discuss.