Bitcoin’s Price Surge Fails to Entice Former Day Traders
The price of Bitcoin has rallied in recent weeks, more than doubling from its November 2022 lows after the UK collapse of the cryptocurrency exchange FTX. Former day traders who previously made big profits from Bitcoin’s volatile swings say they have no plans to return, however, even as optimism grows that the market is turning a corner.
“Bitcoin is not as volatile or as driven as it was,” said Peter To, a 34-year-old professional stock trader in New York who claims to have made over $1 million day trading Bitcoin from 2013 to 2017, in an interview with Bloomberg. “For traders like me who are hunting for inefficiencies in the market, it’s not as interesting. The allure is kind of gone.”
As the cryptocurrency industry looks to move past the FTX debacle and usher in a more mature era, some believe the days of spectacular growth and trading opportunities may be over. While Bitcoin’s recent climb above $35,000 sparked some enthusiasm, it remains far below its all-time high of nearly $69,000 in 2021.
This #Bitcoin consolidation range is getting more boring by the day… pic.twitter.com/HFnkreZqEa
— Justin Gallum (@JustinGallum) November 6, 2023
Retail crypto trading fell off last year after FTX’s collapse, with Bitcoin sinking below $16,000.
According to JPMorgan Chase & Co., the FTX collapse coincided with more than just the crypto industry trading downturn. Day trading also declined in equity markets, with the share of retail investors in US stock volumes plunging 40% between early 2021 and end of 2022.
Lately, there are signs of a modest retail revival even as stocks have pulled back, with the S&P 500 down around 5% since July. From the first half to the ongoing second half, retail crypto volume as a percentage of total US volume
Read more on cryptonews.com
