Trading signals on the Australian stock market show traders are now on the cusp of seeing a spike in trading activity, as bitcoin and other digital currencies are increasingly being used in forex trading.
Signal analysis by Australian forex trader Simon Dreyfus, who specializes in trading in the forex market, found a spike on the day trading was activated.
“On the 12th there was a massive spike in activity on the forexaexchange (forex exchange) where people bought bitcoin and then immediately immediately withdrew them,” Mr DreyFus said.
This was accompanied by a surge in the price of bitcoin, which spiked to more than $US5,000 on Monday morning.
Mr Dreysfus said the sudden surge in trading was unprecedented, and that traders were now seeing a significant spike in trades.
Forex market is ‘coming alive’Bitcoin is the fastest-growing digital currency on the market and the Australian market is a “very big one” because of the amount of trading that takes place, Mr Dreysfus explained.
But there are other digital assets such as gold and silver, which have been making significant gains, but are also relatively volatile, Mr Bower said.
“The gold and the silver are going to be volatile and the gold and it’s going to rise and then it’s probably going to fall again,” he said.
Forex trading can only be conducted in one currency at a time, meaning traders must be able to switch currencies at the drop of a hat, he said, and it was not unusual for traders to trade in other currencies and not the Australian dollar.
When the day trade was activated on Monday, the US dollar was trading at $US6.25, while the euro was trading above $US3.10.
In terms of trading volumes, the amount was similar to the previous day trading, which took place on June 19.
However, the market has since rebounded, with volumes climbing by around 40 per cent over the past 24 hours.
A recent report by Australian bank Barclays found that digital currencies were the third largest source of trading volume, after gold and gold miners.
“There are many reasons for the rise in trading volume,” Mr Bowers said.
“One is that the currency market is now coming alive and is not as regulated as it was a year ago,” he added.
“[Bitcoin] is one of those digital currencies that people are using and trading.
There are also a lot of new digital assets that people use and trade.
Bitcoin is a new currency and is becoming a lot more mainstream and it has an effect on other financial markets.”
It’s very exciting to see this new, exciting market that we have and to see it growing and it is becoming more and more mainstream.