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Bitcoin’s April trading volume 7x higher than Apple’s despite twice-lower market cap

Bitcoin's April trading volume 7x higher than Apple's despite twice-lower market cap
Justinas
Baltrusaitis
6 months ago
4 mins read

Despite commanding a market capitalization of over $2 trillion, Apple (NASDAQ: AAPL) trails bitcoin in trading volume highlighting the impact of the asset’s current sustained rally. The comparison shows how bitcoin is performing compared to Apple, the biggest company in the world by market capitalization.

Data acquired and calculated by Finbold indicates that bitcoin’s trading volume of $1.84 trillion in April 2021 is at least 7.4 times higher compared to Apple’s $249.22 billion. Bitcoin’s highest trading volume was $86.67 billion on April 23, while Apple’s was on April 29 at $20.17 billion. 

Elsewhere, Apple also lags behind bitcoin in the 30-day average trading volume by at least 5.1 times less. Bitcoin trading volume was at $61.48 billion for the monthly average, while Apple stood at $11.87 billion. Data on bitcoin’s trading volume correlates with the dates when the Apple stock was trading.

Why bitcoin recorded high trading volume 

Although bitcoin and Apple represent different class assets, the digital currency trading volume is impressive. With bitcoin emerging top on the trading volume metric, proponents of the asset believe it’s a justification that the digital currency will in the future act as a hedge. 

Historically, bitcoin and other cryptocurrency trading volumes usually spike in the course of extreme price swings, putting a focus on the role of speculative traders in digital currency trading. In April, bitcoin recorded a mixed price movement with several corrections characterized by a new record high. Despite attaining the $64,800 all-time high price on April 14, bitcoin’s value dropped by about 8% for the entire month. 

The record price level partly explains the high trading volume compared to Apple. The new price might have influenced investors seeking short-term gains with people looking to make quick money. Furthermore, the fear of missing out on the asset’s rally also set in. At the same time, with numerous price corrections across the month, fear might have set in among new investors who panicked they might lose money hence the need to sell. 

It is worth mentioning that bitcoin trading is on a 24/7 basis without any restrictions, while Apple and traditional stocks only trade five days a week exclusive of holidays.

Bitcoin no longer ignored by traditional players 

Bitcoin’s significant trading volume against Apple shows the digital currency is now competing with established traditional asset classes. As a result, the asset is no longer being sidelined, especially with the influx of institutional investors into the sector. 

The ongoing rally is a direct result of institutions like Tesla, Visa, and PayPal investing in bitcoin or supporting the asset’s transaction. The digital currency is increasingly being considered as a safe haven, especially in the wake of the economic meltdown resulting from the pandemic. Notably, focus is also on Apple if the electronic giant will make a significant step into the crypto space. 

For Apple, the stock surged by about 4.8% in April, and the trading volume trails bitcoin reflecting the current state of the traditional stock market. As bitcoin maintains its rally, the traditional stock market can be considered to be in a recovery mode after a historical dip in the wake of the pandemic. 

However, the market has since recovered to hit new all-time highs. Apple is among companies whose stock benefitted from the health crisis as the company’s products helped people manage the lockdown. 

In general, bitcoin has shown its resilience this year and maintaining a high trading volume in April despite price corrections points to a level of increased adoption. Additionally, it also highlights a lot of activity on the bitcoin network compared to Apple. This suggests an increasing number of participants on the bitcoin blockchain. 

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Justinas Baltrusaitis
Author

Justin crafts insightful data-driven stories on finance, banking, and digital assets. His reports were cited by many influential outlets globally like Forbes, Financial Times, CNBC, Bloomberg, Business Insider, Nasdaq.com, Investing.com, Reuters, among others.

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