The cryptocurrency market has grown exponentially in the last year and is driven by Bitcoins, which have totaled a trading volume higher than that of Apple, Microsoft and Amazon put together.
To highlight this trend, and to deepen its contours and motivations, is Crypto Parrot, site (and community) cryptovalue social trading simulator, which underlines how this growth has now brought the Bitco
Data presented by the cryptovalute trading simulator Crypto Parrot indicates that the average daily turnover of 30-day Bitcoin is $39.1 billion, higher than the average daily cumulative turnover at 30 days
The average daily turnover of 30-day Apple trading is $13.63 billion, continues the analysis of Crypto Parrot, while for Amazon it is $11.42 billion.
Microsoft’s volume trading in the same period is $5.92 billion, followed by $4.38 billion in Facebook, while Alphabet is fifth with $2.31 billion.
The average daily volume of trade taken into account by Crypto Parrot is in a period of time between 1 December and 31 December 2020, a period when Bitcoin experienced a significant upward race.
As of December 31, the asset was traded at about $29,000, a price that had represented a new all-time high. Currently, the volume of trading of Bitcoin is potentially higher, after the asset has exceeded the threshold of 30,000 dollars and has been traded at a new historical maximum of more than 34,400 dollars on his birthday (3 January 2021).
Crypto Parrot wonders, however, if the Bitcoin is not in a bubble. Although Bitcoin and the actions highlighted represent different asset classes, the high volume of digital currency exchanges is impressive, Crypto Parrot points out, and is related to a period when Bitcoin has reached a new record
Historically, adds Crypto Parrot, the large volumes of Bitcoin trading have been a key indicator of the imminent price volatility. A surge in trading volume is generally considered as a precursor event of a large price change. According to Crypto Parrot, this is evident considering that after the period under review, Bitcoin continued to increase in value by reaching new levels despite the debate on the bubble.
Among the cryptocurrencies experts there are discordant views on the opportunity to consider the current price surge as a bubble or not.
Another factor that Crypto Parrot highlights is that, due to the high volume of Bitcoin’s trading relative to shares, investors may have been influenced by a desire for quick and easy short-term gains.
In the world of cryptocurrencies,
Fear of missing out (or FOMO, that is, fear of being excluded) is known for its influence on more people in stocking up digital goods.
While the volume of Bitcoin’s trade took off, the share highlighted was still in recovery mode following the impact of the coronavirus pandemic, at which start the stock market collapsed (although, notes Crypto Par
Crypto Parrot also notes that the volume of trade of $37.68 billion was recorded instead during the period when the economy received a strong boost due to the approval of the vaccine against coronavirus.
According to Crypto Parrot, in general, the huge volume of Bitcoin exchanges indicates that the asset is competing with established companies such as Apple and Alphabet. As a result, most cryptocurrency supporters consider Bitcoin as a refuge that can remain stable during a stock market collapse.