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Discussions on Reddit’s main cryptocurrency forum WallStreetBets have surpassed “meme stock” forum activity this month, with the extent to which day traders have shifted their focus from the equity market to the return of digital coins for quick and somewhat fun returns.
Data from the Quiver Quantitative research group show that the volume of comments on the r / Cryptocurrency forum on the social networking site rose 82 percent from May 1 to May 21, with nearly 36,000 comments made daily on Friday at the end of the eventful week for bitcoin and other digital. coins.
In contrast, the number of comments on r / WallStreetBets fell by 42 percent at the same time, to just 13,000 on May 21st.
WallStreetBets was the star of the commentators earlier this year he pushed for a brief squeeze This led to the rise of GameStop and several other larger stocks, which led to large losses in hedge funds that opted for stocks. He was the CEO of Reddit called to the congressional convocation into the frenzy.
Millions Reddit users began tracking r / WallStreetBets at the time, but comments fell 97 percent by the end of January to more than 430,000 posts a day, according to Quiver data.
Cryptocurrency discussion is prohibited on r / WallStreetBets. Moderators prohibit messages from the environment cryptocurrencies “Or any other worthless value that can be exposed to fraud or pump and dump schemes.”
The debate over R / Cryptocurrency has “steadily risen,” said James Kardatzke, founder of Quiver.
“Many active retail investors don’t want to see their Robinhood numbers [brokerage] accounts go up, they want to invest in a narrative as well, ”Kardatzk said, and meanwhile meme stock trading for example, as GameStop and AMC have become more mute in recent months, the development of cryptocurrency has been serious and rapid.
In recent weeks, the founder of Tesla Elon Musk he has publicly backed and then chilled bitcoin and reported the dogecoin currency of jokes; bitcoin giant carbon footprint has attracted attention; and the Chinese government has stated its decision reduce use cryptocurrency.
“Crypts have high volatility and more interesting stories,” Kardatzk said.
Musk was mentioned more than 2,000 times in r / Cryptocurrency earlier this month that his electric car company would not accept any more bitcoin in its immediate tweets, a move that sparked a digital currency fire sale.
Last week, on Wednesday, when bitcoin hit its lowest price of $ 30,000, the comments made at the cryptocurrency forum reached a record high of $ 59,000.
A final examination they found that the number and tone of Reddit’s comments had an impact on GameStop’s day trading earlier this year.
Similar “negotiation and gamification of social media” similar to trading was also evident in cryptographic assets, said study author Brian Lucey, a professor at Trinity Business School in Dublin. “You have a team that is looking for excitement. They’ve got a different perspective on risk and profitability. ”
Steve Sosnick, chief strategist at Interactive Brokers, said: “Investors still love a meme stock. Crypto meme was a clearer expression of trading. It took a lot of steam out of stock and out of speculation of options.”
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