Capital.com data: Retail traders fall back in love with Bitcoin in Q1 2024

LIMASSOL, CYPRUS, 23 May 2024 – Capital.com, the high-growth retail trading platform whose client trading volumes surpassed $1trillion in 2023, saw a 248% quarter-on-quarter growth in Bitcoin (BTC) trading volumes in Q1 2024, its highest level in 12 months. The most significant flows occurred in March, coinciding with Biticoin reaching all-time highs after a 12-month hiatus. The data suggests that traders were actively trading the market during the price surge (Crypto trading is not available to retail clients in the UK).

According to data published by Capital.com, trading volumes in Contracts for Difference (CFDs)— a financial derivative that allows traders to speculate on a financial market without owning the underlying asset— on BTC/USD was up 248% in Q1 2024 vs Q4 2023. In Q1 2024, the number of traders taking positions on BTC/USD was 54% higher than the previous quarter while the number of BTC/USD trades executed on the platform increased by 220% over the same period.

The surge in trading activity was in large part driven by the spectacular BTC price rally in March. There were twice as many traders taking positions in BTC/USD in March compared to February 2024. In March alone, trading volumes reached over USD$3.3 bn, up 142% from February 2024.

Commenting on the surge in Bitcoin trading activity, Kyle Rodda, Senior Market Analyst, Capital.com, stated:

“Bitcoin prices reached an all-time high of USD73,000 in March 2024. The move made the crypto asset one of the best performing in the first quarter, rising approximately 65% and setting off a fresh bout of FOMO (Fear of Missing Out) among traders. The resurgence of interest in Bitcoin on the Capital.com platform highlights the dynamic nature of the cryptocurrency market. Despite the fluctuations, traders have remained actively engaged, leveraging the opportunities presented by the market movements.”

BTC/USD trading activity in March 2024:

• The number of BTC/USD trades executed on the platform was up 178% in March (vs Feb) 2024 and accounted for some 6% of all trades on the Capital.com platform in March 2024.
• At the height of the Bitcoin price rally, in March more than 17% of all active traders on the platform took a position on BTC/USD.
• Sentiment was equally bullish among ‘new traders’, with close to 10% of all new traders (traders who have never traded on the Capital.com platform before) deciding to start their trading journey with a position in BTC/USD.
• BTC/USD traders were on average 2% more profitable during the height of the BTC price rally.

In the first week of March, BTC/USD traders on Capital.com experienced greater profitability levels, with traders earning an average of 2% on their invested capital per trade, that’s an average value of $20 profit on each position. This suggests that traders capitalised on the price movements and market volatility to generate favourable returns.

While trading volumes have dropped some 45% since its March highs, the number of traders holding BTC/USD has moderated at a slower pace, dipping by just 15% in April suggesting there remains interest in the popular cryptocurrency. At the time of press, BTC prices hit $72,000 again ( 21 May 2024 ), which led to a 68% spike in one-day trading volumes on the Capital.com platform.

“Bitcoin appears to have maintained its strength despite prices easing off since its peak in March. As markets grow more confident in Fed rate cuts this year and with implied volatility low and sentiment reasonably bullish, Bitcoin remains a gauge of monetary policy expectations and risk appetite. Expectations for lower interest rates in the US, coupled with Bitcoin’s halving in April, and a flood of new Bitcoin spot ETFs gaining regulatory approval are likely contributing to bullish sentiment,” added Rodda.

The data above reflects all BTC/USD trades executed on the Capital.com platform between 1 May 2023 and 1 Apr 2024. Crypto trading is not available to retail clients in the UK.