Bitcoin Experiences a Surge in Retail Purchasing after a Price Crush
Coinbase stated that it witnessed a tidal wave of deposits in the 48 hours after Bitcoin’s plunge on the 12th of March 2020. The crypto exchange saw its highest Bitcoin buying numbers in the last one year.
Coinbase posted a recovery from its drop to $3800 with bullish sentiment presenting before Bitcoin reached $7800, which may contribute to a further upward push, after the block reward halving coming in the short term.
Reports reveal that retail Bitcoin purchasing on Coinbase rose six-fold after Bitcoin’s drop, with trading activity inclining by 3.5 times the average level. There was also an increase in new user registration during this period, with the exchange platform reporting a 100% growth in two days.
ETH and XRP also Experience an Incline in Retail Purchasing
ETH and XRP also saw a significant surge in retail purchasing during the 48-hour period that saw prices drop by over 50%. The reports show that Coinbase customers typically purchase 60% more than they sell. Still, during the crash, this jumped to 67%, taking advantage of market troughs and representing strong demand for crypto assets even during extreme volatility.
The Coinbase report shows that retail traders deposited more than $1.3billion in cash and cryptos to buy Bitcoin and other digital currencies during the price crash.
Renowned Crypto Exchanges Get A Boost
Simplex, a fiat-to-crypto onramps provider, revealed that most retail users bought Bitcoin at around $6000 levels on the 12th of March 2020.
On the other hand, peer-to-peer Bitcoin exchange Paxful saw the number of new signups double in March. It indicates that more people are gaining interest in cryptocurrencies. Additionally, Luno, a London-based crypto exchange, recently registered a 50% incline in new users in the last 30 days.
Similarly, Bitfinex and Okex noted a remarkable rise in new users this month. On the other hand, Kraken exchange reported an 83% rise in signups and a 300% uptick in the number of users going through the know-your-customer (KYC) process.