According to the Zhitong Finance APP, although Bitcoin, the world's largest cryptocurrency, has rebounded in recent weeks, more than doubling its level after last year's catastrophic crash, Peter To, a 34 year old New York professional stock trader, said this is not enough to bring him back to the past. It is understood that between 2013 and 2017, PeterTo claimed to have earned over $1 million through intraday trading during the Bitcoin bull market
According to the Zhitong Finance APP, although Bitcoin, the world's largest cryptocurrency, has rebounded in recent weeks, more than doubling its level after last year's catastrophic crash, Peter To, a 34 year old New York professional stock trader, said this is not enough to bring him back to the past. It is understood that between 2013 and 2017, PeterTo claimed to have earned over $1 million through intraday trading during the Bitcoin bull market.
Bitcoin is not as unstable and dynamic as before, "To said. For traders like me, this is not interesting. This attraction has kind of disappeared
Last Thursday, after 15 days of testimony and approximately four and a half hours of deliberation, the jury ruled that the cryptocurrency exchange FTX was guilty of seven charges including wire transfer fraud, conspiracy to commit fraud, and conspiracy to launder money. Sam Bankman Fried (SBF), the founder of FTX, former currency tycoon, and global billionaire, was ultimately convicted of all charges.
The trial of the "largest financial fraud case in American history" began in early October and lasted for one month. The sentencing date is set to March 28, 2024. If SBF is sentenced to the highest sentence on all charges at that time, it will face 115 years in prison.
Many industry insiders believe that the end of this ugly incident will mark the end of the immature and chaotic stage of the industry, and usher in a more mature and mainstream accepted era. However, this may also mean that the market will no longer be able to provide the astonishing growth and once-in-a-lifetime trading opportunities of its early years.
As early as a year ago, when the industry was hit by the collapse of FTX, retail investors withdrew one after another. According to data from JPMorgan Chase, Bitcoin fell below $16000 at the time, and traders' returns will decrease by about 40% in 2022.
Meanwhile, cryptocurrencies are not the only market where short-term traders retreat. The bank stated that at the end of last year, the share of retail investors in trading volume in the US stock market plummeted by 40% compared to early 2021, while stocks that had been boosted by retail investors fared far behind the broader market.
Despite a slight decline in the overall market, with the S&P 500 index down about 5% since the end of July, the current situation seems to have improved. From the first half to the second half of the year, the proportion of retail crypto trading volume on the Bitcoin Exchange in the United States increased from 33% to 35% of total trading volume, while globally it increased from 8% to 9%.
Last week, the price of Bitcoin broke through the $35000 mark, causing quite a stir. Although this is still far below the historical high of nearly $69000 in 2021, the market is optimistic that the first exchange traded fund to support Bitcoin will be approved, and BlackRock submitted its application in June. In August, a judge overturned the decision to prevent Grayscale Investments LLC from converting Bitcoin trusts into ETFs, which brought more positive news.
In a bear market environment, the retail market is usually quite dull. I think we have seen some improvement, "said Bobby Zagotta, Bitstamp's US CEO
Cryptocurrency day traders gradually leave the market
Nevertheless, many cryptocurrency day traders have left. Among them, Craig Murray, who estimated to have made nearly $200000 in this market, said that he narrowly escaped everything after industry friends heard rumors that FTX was about to collapse.
Murray said, "This is a bit overwhelming for me. I just don't think it's worth it. Why do I put money in this place because one day it may disappear
Another indication is that retail investments in cryptocurrencies have not returned to their previous levels. Assuming that the typical person for weekend trading is day traders, this can be seen from the trading volume on weekdays and weekends.
Frederick Collins, CEO and founder of Velodata, an encrypted data platform, said: "It is not uncommon for weekday trading volume to average 50% higher than weekend trading volume, whereas in the past this ratio was almost 1:1
In contrast, Tim van den Berg lost approximately $12000 in this market between 2016 and 2019. It is understood that VandenBerg uses the Dutch trading platform Plus500 for various transactions such as Bitcoin and Dogcoin.
I have been losing money, "he said. I have to save money, find a better job, and worry about my studies
24-year-old VandenBerg said he now has a better understanding of the market and makes money from futures trading, but he is no longer interested in digital assets.
Cryptocurrencies are being manipulated like this now, "he said. At first, it was something that could defeat the banking system, but now it's just a tool for the wealthy to transfer a large amount of funds. When the US market closed, cryptocurrency basically remained unchanged
Cryptocurrency day traders gradually leave the market
Stock trader To agrees. He stated that he had earned his largest crypto profit around 2am.
When everyone in New York is sleeping, there will be a 20-30% decline in the market, "To said. In the early days, you would look for these malfunctions to make money. Now, if cryptocurrencies rise, you make money, and if they fall, you lose money. It's more directional, it's a different game
Although Murray no longer trades cryptocurrencies as frequently as before, he holds some funds on exchanges and sometimes teaches beginners how to trade digital assets. However, he believes that this is not a good idea for most people.
He said, "Many people enter the cryptocurrency industry and believe that this is an easy money to make because millions of people make money through irreplaceable tokens and other coins." "Then, they will take on greater risks than expected and even damage their accounts
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