Analysts at the crypto-intelligence firm Coin Metrics revealed they have witnessed divergent behaviors from retail investors and institutional traders Bitcoin (BTC) since the sell-off on March 12.
The blockchain analytics company reports after the crypto market cratered that a significant number of retail investors appear to have jumped into the Bitcoin bandwagon to buy the dip.
“The number of addresses holding relatively small amounts of BTC has been increasing since the March 12th crash… This could signal that adoption is growing, as new users start acquiring relatively small amounts of BTC.”
Meanwhile, during the meltdown, the chart also shows institutional Bitcoin traders likely sold their positions.
The turquoise line, which represents the number of addresses holding between one hundred thousandth (1/100 K) and ten thousandth (1/10 K) of the supply, noseded after 12 March and continued to fall for the rest of the month.
“The number of addresses holding between one billionth (1/1B) and one hundred millionth (1/100M) of the total BTC supply (i.e. between 0.000000001% and 0.00000001% of total supply) has increased about 6% over the last 90 days. Similarly, the number of addresses holding between one hundred millionth (1/100M) and one ten millionth (1/10M) of total supply increased about 4%.”
Coinbase also Released Data
Recently, Coinbase released data on what happened at the exchange during the first 48 hours following the March crash of Bitcoin which pushed BTC below $4000.
The exchange says it has experienced a fivefold increase in deposits from cash and crypto. The influx was $1.3 billion, with 67 percent buying the dip from the traders.
On the other hand, ETH amount held by the exchanges in our coverage (listed below) has grown over the last 30 days, while the amount of BTC held by exchanges has decreased.
ETH has increased by about 5%, while the amount of BTC held on exchanges has decreased by about 3%. The drop in BTC is largely due to the rapid decrease in supply held by BitMEX, as covered in the Network Highlights section of State of the Network Issue 44.