Despite March 12 hosting a record daily drop in the price of Bitcoin, traders on Coinbase’s retail platform were buying the dip.
Leading United States-based cryptocurrency exchange Coinbase has published a report providing detailed insights into how its users responded to the violent crypto market crash suffered on March 12.
While many in mainstream markets were panicking as President Trump’s travel ban sent shockwaves across the global economy, crypto traders on Coinbase were mobilizing funds to buy the dip, according to a report published March 31.
Retail traders on Coinbase rally to buy the dip
Coinbase’s retail platform saw “record-breaking” trading activity throughout the 48 hours during and after the aggressive slump compared to its 12-month averages.
Bitcoin (BTC) was the most-traded crypto asset during the crash, with Coinbase estimating total BTC trading was six times the average during the crash — fuelled by three and a half times the average number of active traders and a buy-ratio of 69%.
Ether (ETH) was the second-most popular cryptocurrency during the dip, with five times the average number of ETH traders driving a seven times increase in volume with a 67% buy-ratio.
All other altcoins combined also saw a seven times increase in trade driven by five times the typical number of traders on average — with XRP, Tezos (XTZ), Chainlink (LINK), Litecoin (LTC), and Bitcoin Cash (BCH) cited among the most popular markets.
Crypto crash drive increase in buying pressure
$1.3 billion in fiat and cryptocurrency were deposited onto Coinbase amid the sell-off, comprising five times the typical average.
The influx of capital was accompanied by double the usual number of new-user signups, and triple the typical number of active traders. In total, the surge in user activity drove trade volume equating to six times the average.
Coinbase also notes a more than 10% increase in buying pressure relative to selling — with buyers representing 67% of all trading activity, up from 60% typically.
