Bitcoin recently hit its 2020 bottom on March 12, popularly referred to as Black Thursday. The plunge on that day sent shivers down investors’ spines as the crash was quite shocking and definitely not desired. However, according to a recent report from analysis company Coin Metrics, retail investors had a very different reaction to the crash, then seen with institutional holders.
According to the report, many retail investors saw Black Thursday as an opportunity to jump into the market and acquire positions. For most markets, many people buy in when prices are down. Coin Metrics says that since March 12, there has been a significant increase in the number of Bitcoin addresses with small amounts of the asset.
“This could signal that adoption is growing, as new users start acquiring relatively small amounts of BTC.”
On the other hand, Coin Metrics notes that institutional investors had a different approach. The report contains a graph which shows that Bitcoin addresses that held between one hundred-thousandth and ten-thousandth of the asset’s supply began to fall. This fall continued till March ended, even though it did not maintain its steepness.
According to a recent Coinbase report, the exchange said that traders on its platform also took advantage of the price plunge and significantly increased trading activity with a total of $1.3 billion within 48 hours.
Image Credits: Pixabay