Bitcoin (BTC) is increasingly becoming a formidable competitor to key traditional finance players based on key metrics like trading volume.
Data provided to Finbold by cryptocurrency trading simulator Crypto Parrot indicates that Bitcoin recorded an average daily trading volume of $36.7 billion between October 1 and October 11. The trading volume is at least two times higher than electric vehicle manufacturer Tesla (NASDAQ: TSLA) which had $14.64 billion
The volume is also at least three times higher than the $10.98 billion registered by Apple (NASDAQ: AAPL). Elsewhere, during the period, Amazon’s (NASDAQ: AMZN) volume of $9.09 billion was four times less than Bitcoin’s. Microsoft’s (NASDAQ: MSFT) trading volume of $7.13 billion was at least five times less than Bitcoin’s.
Worth noting is that Bitcoin’s trading volume is significantly higher considering that the asset is traded 24/7 while the stocks are confined to five days exclusive of holidays. Furthermore, Bitcoin and the selected stocks belong to different assets.
The trading volume correlates with Bitcoin’s surge in value after experiencing high price volatility in September. The trading volume potentially indicates that more investors are getting involved to profit from the rally.
Furthermore, the trading activity potentially indicates that investors were encouraged after staying on the sidelines in September.
With the number one ranked cryptocurrency gaining by over 20% in October, the price movement meant that the fear of missing out also kicked in, driving the trading activity up.
Tech stocks struggle
Elsewhere, the traditional stocks from the tech sector are trailing Bitcoin in the trading volume as they show volatility. The stocks are currently struggling to remain resilient amid an environment of rising interest rates and inflation hence recording low investor interest.
Furthermore, the trading volume for the stocks lags behind Bitcoin, an indicator that the market is still suffering from the impacts of the coronavirus pandemic. Notably, the stocks emerged as a haven for investors amid the health crisis.