It has been recently revealed that the retail investors who are active on Reddit are switching their focus from equities to cryptocurrencies. The discussions on r/Crytpocurrency have surpassed the activity on the forum of the WallStreetBets this year.
Reddit Discussions Reveal Retail Investors are Shifting to Cryptocurrencies From Equities
The Reddit users on the cult-like finance subreddit WallStreetBets (WSB) that managed to earn mainstream attention alongside the meteoric surge of meme stocks earlier this year seem to be eyeing elsewhere for their financial advice.
In accordance with the data revealed from Quiver Quantitative, a research company, the volume of the comments rose by as much as 82% between May 1 to May 21 on the popular r/Cryptocurrency subreddit.
Steven Sosnick, the Chief Strategist at Interactive Brokers revealed that the investors still love a meme stock and said:
“Crypto was a purer expression of meme trading. It took a lot of steam out of stock and options speculation.”
On May 19, when Bitcoin fell below the level of $40K, the record high of over 59,000 comments in a single day fell for the first time in three months.
r/Cryptocurrency Surpassing WSB Comment Volume
On May 21, r/Cryptocurrency witnessed around 36K daily comments while the number of comments on WSB fell to just 13K, recording a 42% fall over the time period of three weeks.
The Founder of Quiver Quantitative, James Kardatzke said that the discussion on r/Cryptocurrency has been gradually climbing.
In addition to this, addressing the fluctuations in the market and interesting storylines in the market, James said:
“Crypto is having a lot of volatility and more interesting storylines.”
Moreover, in accordance with the data revealed from Quiver, which was shared immediately after the tweet from the owner of Tesla, Elon Musk was released revealing the decision of Tesla to no longer accept Bitcoin as a payment method.