fbpx
QQQ
-3.13
345.14
-0.92%
DIA
-1.00
342.86
-0.29%
SPY
-1.97
419.27
-0.47%
TLT
-0.40
139.66
-0.29%
GLD
-0.45
166.80
-0.27%

Cryptocurrency Trading Falls In Popularity During COVID-19 Pandemic

April 10, 2020 8:50 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Cryptocurrency Trading Falls In Popularity During COVID-19 Pandemic

In the U.K., cryptocurrency trading has lost its appeal and is now among the least popular trading asset classes as the market wrestles with a coronavirus pandemic, according to a report by the brokerage eToro.

The trading platform says that, in a major change, crypto went from being a leading category to accounting for just 7% of total trades.

Indices have become the most popular asset class, accounting for more than a third of all open positions.

Indices presented the most profound change, eToro says. Once considered a long-term investment option, they have become a short seller’s favorite.

Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.

Short orders on U.S. and European indices became the majority, but this was later offset by some exchanges disabling short orders altogether, the report says — and some indices recovering due to government stimulus packages.

Coming closely after indices are stocks, which make up more than 30% of trades, and commodities, which have kept their proportionate share at around 16%, says eToro.

Data from the company shows short positions have become far more common, almost doubling in their relative number to long orders between January and mid-March.

“Moreover, since many investors would not even consider using short orders, due to their higher risk potential or due to a long-only strategy, this incline indicates that a growing number of people have lost faith in the markets,” the report says. 


Related Articles

Who Is The US Congressman That Bought Dogecoin? And For How Much?

Dogecoin (CRYPTO: DOGE) has been a trending storyline over the last week with the valuation of the meme cryptocurrency soaring ahead of what investors are calling #DogeDay420 on April 20. Many retail traders have invested or traded Dogecoin over the last week and new reports show one member of the U.S. House of Representatives is also buying Dogecoin. read more

Exclusive: Webull Crypto To Offer Dogecoin To Customers April 20 — Doge Day

Dogecoin has been one of the hottest cryptocurrencies in 2021 and is seeing strong demand from retail traders looking to buy, sell and hold the meme-based crypto. read more

Britcoin? British Government Considers Its Own Digital Currency

The Bank of England and Her Majesty's Treasury are seeking to plant the Union Jack in the midst of the digital currency realm with Britcoin. read more

Crypto Flash Crash Post Mortem: Strong Hands Bought The Dip Says On-Chain Analyst

According to on-chain analyst Willy Woo, the weekend’s massive crypto selloff did not phase long-term holders as they used the opportunity to buy more Bitcoin. What Happened: Woo broke down the events that led to Bitcoin’s fall $52,000 on Sunday, following the largest single-day drop in mining hash rate since November 2017. read more