Bitcoin records 3x higher average trading volume in October than Apple, Amazon, Microsoft

After experiencing increased volatility in late September, Bitcoin (BTC) appears to be regaining its momentum towards another all-time high. The recent surge in the asset's value reflects the trading volume that is significantly higher than selected traditional finance stocks. 

Data compiled by cryptocurrency trading simulator CryptoParrot shows that between October 1 and October 11, Bitcoin recorded an average daily trading volume of $36.7 billion, dwarfing stocks from the traditional finance sector. During the period, electric vehicle manufacturer Tesla (TSLA)  had an average trading volume of $14.64 billion, at least two times less than Bitcoin.

Elsewhere, tech giant Apple (AAPL)  recorded an average trading volume of $10.98 billion which is at least three times less than Bitcoin. During the period, Amazon's (AMZN) volume was four times less than Bitcoin at $9.09 billion. 

Bitcoin's volume surges amid price rebound

With Bitcoin recording a significant trading volume, it is worth noting that the cryptocurrency belongs to a different asset class than the stocks. However, this is an indicator that from an investment perspective, Bitcoin competes with the stocks. Compared to stocks like Apple, Bitcoin has almost half the market capitalization. 

Notably, Bitcoin's trading volume might be higher than the stocks since the asset is traded on a 24/7 basis without any restrictions. On the other hand, stocks like Apple and Amazon trade only five days a week, exclusive of holidays.

Bitcoin's trading volume has surged in October, reflecting a rebound of buying and selling activity. Bitcoin's price corrected significantly amid an increased regulatory crackdown from jurisdictions like China towards the end of September. Therefore, the trading activity potentially indicates that investors were encouraged after staying on the sidelines in September. 

Overall, the cryptocurrency surged by at least 20% in October. Generally, a surge in Bitcoin has historically resulted in fear of missing out (or FOMO), influencing more people to attempt to make quick money. On the flip side, the investors who accumulated the asset during the market lows of September might be selling to cash in. Historically, cryptocurrency trading volume is known to have a spike in the course of extreme price swings, mainly due to speculative traders. 

Why stocks are trailing Bitcoin in trading volume

Elsewhere, the traditional stocks, mainly from15 min went through  the tech sector, have experienced an opposite October compared to Bitcoin. 

The broader tech sector has been mounting in U.S. financial markets in recent weeks, characterized by volatility. Notably, the stocks had previously served as a haven for investors amid the coronavirus pandemic but plunged over the fear of removing stimulus packages. Furthermore, the trading volume trails Bitcoin due to low investor interest since the stocks are susceptible to rising interest rates.

At the same time, although the selected stocks remained resilient amid the coronavirus pandemic, their low trading volume compared to Bitcoin might indicate they are still experiencing the overall effects of the health crisis. 

The stock market collapsed at the onset of the health crisis, but stocks from the technology sector gained as their products helped people navigate the crisis. Additionally, the stocks are still struggling despite the economy reopening following the coronavirus vaccine rollout.