Coinbase Report: BTC Buying Increased Six-fold During ‘Black Thursday’ Price Crash
- Coinbase says its retail clients bought BTC the most during last month’s market crash
- ETH and XRP cryptocurrencies followed BTC in a significant surge in retail purchasing following the March 12 crash
- Other top exchanges across the globe also saw retail investors buying crypto during the dip as interest in crypto surged
According to the report, amid the Black Thursday flash crash, the exchange witnessed its highest BTC buying numbers in the last 12 months.
The top-ranked cryptocurrency has since posted a significant recovery from its drop to $3,800 with bullish sentiment presenting the case for BTC reaching $7,800, which might set the stage for a sustained upward push after the block reward halving coming up in a few weeks.
Data from the report shows that retail Bitcoin purchasing on Coinbase increased six-fold during the price decline with trading activity surging by 3.5 times the usual level. New user registration also reportedly increased during the period with the exchange platform reporting a 100% growth in the 48 hours.
Increased Traction Also Reflected Across Top Altcoins
The increased traction was not only restricted to Bitcoin buying as ETH and XRP also saw a significant surge in retail purchasing during the 48-hour period that saw prices decline by more than 50%.
The report explained that customers on Coinbase typically buy 60% more than they sell but during the crash this jumped to 67%, taking advantage of market troughs and representing strong demand for crypto assets even during extreme volatility.
For Coinbase, the actions of its retail users constitute a recognition of the fact that the price crash presented a unique Bitcoin buying opportunity or as it is more colloquially known, “buying the dip.”
In total, the Coinbase report showed that retail traders on its platform deposited more than $1.3 billion in cash and cryptos to buy Bitcoin and other virtual currencies during the price crash.
Top Exchanges Globally Also Registered Increased Activity
Coinbase is not the only platform that saw retail investors buying crypto during the dip. Earlier in March, fiat-to-crypto onramps provider Simplex revealed that most retail users bought BTC around $6,000 levels on March 12.
Meanwhile, peer-to-peer Bitcoin exchange Paxful saw the number of new signups double in March, indicating that more people are gaining interest in cryptocurrencies. Similarly, London-based crypto exchange Luno recently registered a 50% surge in new users in the last 30 days.
Bitfinex and OKex also reported notable growth in new users this month, according to reports by Decrypt. In addition, the crypto exchange Kraken reported an 83% surge in signups and a 300% uptick in the number of users going through the know-your-customer (KYC) process.
Featured image courtesy of Shutterstock. Source: Cryptopress.