Against all odds, Bitcoin continues to trade high while the Nigerian Stock Exchange (NSE) struggles to keep investors.
The capital market in Nigeria has mostly been held down by the bears this month, and the bearish state has driven investors to debt securities.
On Thursday, March 11, 2021, investors lost N122.47 billion at the Nigerian stock market, with the market capitalisation dropping from N20.36 trillion to N20.24 trillion on Thursday.
The stock market has been hit badly by the Central Bank of Nigeria’s (CBN) decision to offer an appealing open market operation (OMO), which has been luring investors away from Nigerian bourse, and coupled with Bitcoin’s growing profile, the shocks have doubled.
Amid the struggle of the stock market, Bitcoin has been offering itself to investors looking for asset to grow their wealth and store value of their fiat. As of last week, Bitcoin was trading below $50,000, but earlier today, the most popular digital asset traded $58,150.
This is higher than Gold price which currently trade at $55,122, and despite the value of Bitcoin dropping in the last 24hours, to settle at $57,225, the digital asset is still higher in value than Gold, and more attractive than the stock market.
The higher valuation has pushed Bitcoin’s market capitalisation to $1.07 trillion. The surge in Bitcoin has continued to attract Nigerian investors despite CBN ban on cryptocurrency transactions.
With the Nigerian stock market underperforming after an impressive bull run in 2020, Nigerians traded Bitcoin worth $25 million in February, according to DocumentingBTC. That means over N9 billion was put into Bitcoin by Nigerians in one month.