‘Bigfoot’ Companies Squeezing Individual Investors Out of Crypto Market

‘Bigfoot’ Companies Squeezing Individual Investors Out of Crypto Market

The continued stampede of Bigfoot investors into Bitcoin may turn the cryptocurrency market into what the founders and hordes of geeks planned to avoid: a playpen for the moneyed few.The influx of millions of dollars from major companies is likely to drive up the price and smooth out manic price swings, but it also raises questions about the future importance of individual investors in the market.That would create a paradox: Cryptocurrencies, created as an alternative to government-issued fiat money and markets dominated by major institutional investors, may become more like the established markets they seek to replace.NEW YORK, NEW YORK - FEBRUARY 08: A bitcoin ATM is seen inside the Big Apple Tobacco Shop on February 08, 2021 in New York City. (Photo by Michael M. Santiago/Getty Images)

Recent trading volume underscores the growing dominance of major investors.Cryptocurrency trading volumes increased to $2.7 trillion in February, CryptoCompare reported. Volume at major exchanges grew by 35% to $2.4 trillion while volume at smaller exchanges fell by 36% to $381 billion.This suggests growing consolidation of trading at the larger exchanges dominated by major companies and a decline at smaller exchanges typically used by individual investors.Well-capitalized companies continue to add cryptocurrencies to their balance