Major cryptocurrency exchange Coinbase has said that there was an interesting spike on its Bitcoin purchase volume when the king coin crashed on March 12.
In a recent report titled “On Crypto Markets and Bitcoin’s Value Proposition”, Coinbase said a lot of its customers took advantage of the plunge and bought into the market when the price dropped. The exchange has described the trading activity it recorded at the time, as “record-breaking”.
Compared to the average numbers pulled in during the past year, Coinbase’s total traded volume jumped by 6x, with a 3x bump in trading and double the regular number of new-users. In total, its entire deposits – including crypto and cash – totaled $1.3 billion, a 5x jump.
Furthermore, even though there was also a lot more activity with other assets including Ether (ETH), XRP, Tezos (XTZ) and Chainlink (LINK), BTC was clearly the most preferred. The report says Bitcoin purchases increased to 67%, from the regular 60%.
The development is particularly interesting, especially when compared with what was obtainable in other financial markets. At the moment, the worldwide pandemic has significantly hit markets so much that most of them are still in freefall.
The U.S. Federal Reserve has said it will be printing and injecting a lot more money in the market, trying to calm the general public about the safety of their funds. However, this has not done much in placating traders and investors.
Coinbase seems to buttress this in the report, by pointing out that as of March 27, S&P was down 6% with Bitcoin up 23%.
Recently, Square’s Chief Financial Officer (CFO) has also said the platform is also seeing a lot more interest in Bitcoin even amidst all of the current volatility. Speaking during an investor call, CFO Amrita Ahuja said:
“Adoption and engagement of fractional equity investing in Bitcoin has accelerated in recent weeks given recent market interest and volatility.”