Bitcoin's Spring Rally Drives Users to TradingView

Neil Dennis

A further indication that the price rally in bitcoin over the past three months has been accompanied by a surge in active traders was suggested by growth in usage of the TradingView website.

TradingViewprovides charting, historical data and other tools across currency, bond, equity, commodity, CFD and crypto markets for around 8 million total active traders.

Internal data showed that the number of active traders looking at information on bitcoin rose to 2.5 million users per month in June - just as the price of bitcoin reached an 18 month high of $13,880 on June 26.

This was by no means a record, but more than double the number of active users per month seen back in December 2018 when the price of bitcoin was languishing at just above $3,000. Nearly 5 million active users per month were seen during the broad crypto rally that took the bitcoin price to $20,000 in December 2017.

Increased Day Trading

While the data provides some evidence of increased activity, its most likely this is from day traders, as the company said its users were "extremely engaged, and check in more than seven times a day on average".

Indeed, the tools TradingView provides are largely for day trading activities, with charts that show patterns specifically for giving traders buy or sell signals. 

Recent data also showed that Coinbase, the San Francisco crypto exchange, was rapidly adding to its user base, hitting the 30 million mark this week after adding five million users in the last 10 months.

The TradingView data were unable to provide any information on increased activity in the purchase of cryptoassets as long-term investments.

Hodlers Also on the Rise

It is likely, however, that this is also on the increase. One of the largest bitcoin investment funds has recently reported strong growth in its total assets under management and large inflows from institutional investors into its flagship fund.

Indeed, Grayscale's total assets under management nearly tripled to $2.7 billion during the first six months of 2019, the company reported last week. The company saw a near 100% increase in product inflows in its second quarter, 84% of which was from institutional investors.

There's been something of a sell off in the market over the past few days, however, and the price of bitcoin has fallen back below $10,000 on Tuesday.