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Speculation in bitcoin and cryptocurrency has exploded this year as financial apps roll out crypto support and stimulus cash flows in.
The price of bitcoin has skyrocketed with so-called Tesla, Gamestop, and AMC meme stocks through 2021, although Facebook has also risen as investors cram into tech companies.
As a result of trade restrictions placed on certain stocks in an attempt to calm markets, “hundreds of millions of dollars” have been poured into memes-based cryptocurrency dogecoins, billionaire exchange chief executive says of crypto FTX, which predicted a “convergence” between “crypto and mainstream”.
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The price of bitcoin has skyrocketed with many so-called memes stocks this year. Some in crypto see a … [+]
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“There are tons and tons of people who are interested in crypto trading and also interested in stock trading,” said Laura Shin Sam Bankman-Fried, CEO and founder of FTX. Not-confirmed Podcast. “The moment a group of brokers, including Robinhood, restricted buying Gamestop, like literally at that point in time hundreds of millions of dollars were poured into dogecoin. And that was just a very strong signal. that they are the same people. “
In January, the Robinhood trading platform restricted the purchase of Gamestop shares after netizens collaborated against hedge fund short sellers who bet the price of Gamestop would drop.
“These same people who were buying Gamestop were buying dogecoins,” Bankman-Fried said. “And I think, frankly, the same people who were buying Tesla and Facebook were buying bitcoin and ethereum.”
Robinhood is one of a host of equity and funding trading platforms, including payments giant PayPal, which have added support for bitcoin and cryptocurrencies in recent months. Last week, in its prospectus for its upcoming public offering (IPO), Robinhood revealed that 17% of its transaction-based income came from cryptocurrencies in the first three months of the year, including 34% came from dogecoin alone.
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The price of bitcoin has risen by around 270% over the past 12 months amid the broader asset inflation environment that is … [+]
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Dogecoin, created as a “joke” in 2013, has skyrocketed since January to become one of the most valuable cryptocurrencies in the world, with a market cap of around $ 37 billion. By comparison, bitcoin’s market cap is currently around $ 650 billion.
“I think we are seeing more and more convergence as crypto gets closer to the mainstream, the mainstream gets closer and closer to crypto,” Bankman-Fried said, adding that people were more and more in addition interested “in trading both stocks and crypto”.
Last month, Bankman-Fried declared dogecoin “the asset of the year for 2020 and 2021”.
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