What happened: According to a Financial Times report, Reddit’s “r / Cryptocurrency” cryptocurrency forum garnered more traction from retail traders than the popular even “r / WallStreetBets” stock forum this month.
Data from the Quiver Quantitative analysis platform revealed that the volume of posts on r / Cryptocurrency increased by more than 82% between May 1 and May 21, with daily posts exceeding 36,000 by the end of the week. most volatile bitcoin in terms of price action.
In contrast, the number of posts on r / WallStreetBets fell 42% over the same period.
Why is this important: While traders’ interest in cryptocurrencies has likely increased as the markets have become extremely volatile over the past week, the growth in the number of r / Cryptocurrency users may have increased significantly after the r / WallStreetBets moderators have banned all crypto-related discussions.
“Many active retail investors don’t just want to see numbers in their [brokerage] going up, they also want to invest in a story, ”said James Kardatzke, founder of Quiver Quantitative.
According to him, while trading stocks even like GameStop Corp. (NYSE: GME) et AMC Entertainment Holdings Inc (NYSE: AMC) had been muted over the past few months, developments in the cryptocurrency had come faster and faster.
After Elon Musk announced that Tesla Inc (NASDAQ: TSLA) had revoked its decision to accept Bitcoin for environmental reasons, and reports of increased crypto crackdown in China emerged, the crypto market was by no means short of interesting tales.
Kardatzke noted that it was this increased volatility and “more interesting scenarios” that drew retail investors to cryptocurrency discussion forums.
Price action: At the time of going to press, Bitcoin was trading at $ 37,485, down 5.54% in the past 24 hours.
The overall cryptocurrency market cap fell 4.31% overnight and stood at a total value of $ 1.60 trillion at the time of writing.