Retail Investors Using Robinhood Could Be the Next Bitcoin I...
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Retail Investors Using Robinhood Could Be the Next Bitcoin Investors

The performance of Bitcoin is still sideways within a range from $9k to $10k while investors speculate regarding factors capable of enhancing more upside moves for Bitcoin.

Benn Eifert spoke to Bloomberg regarding this trend observed among Robinhood investors, noting that this new dynamic comes from social media.

“It’s a social media-like dynamic… Someone points out a stock that’s moving and posts some charts, an influencer says, ‘Ok we’re buying it, buy the calls’ and then many people pile in.”

Currently, a strategist known as Matt Maley says that Bitcoin could soon see a huge influx of new capital from retail traders, especially those trading on Robinhood. The influx of retail investors into the renowned investment platform led to a pump in the stock prices of numerous small firms, even those faced with bankruptcy.

According to the strategist, these retail investors may soon find equities boring and turn to Bitcoin, which is also on the platform. That is, he is saying that the investors could soon accumulate Bitcoin positions. Maley further also noted that this trend could be enhanced if Bitcoin attains a new yearly high.

Robinhood traders are gaining more control over the markets, as they have smartphones and comparatively small amounts of capital. Hence, they have been showing off a huge impact on the equities market.

The activities of these investors have prompted close watching of the dynamics among them by market observers, as they have been responsible for some strange market movements, including the huge parabolic upsurge incurred by Hertz’s stock after its bankruptcy.

Several experienced cryptocurrency space participants see a striking similarity between this market dynamic and that incurred by altcoins towards the end of 2017, when profits from Bitcoin’s rally cycled into smaller digital assets, allowing some investors to obtain huge profits.

coinmag

Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.