The largest cryptocurrency exchange in the US, Coinbase, shared interesting details about its users. The exchange claims that, during the recent market crash, a lot of its retail customers bought Bitcoin.
The revelation comes as part of the exchange’s report published earlier today, March 31st. The information is meaningful, as it differs significantly from the usual behavior. According to the report, customers usually buy 60% more than they sell. However, during the price crash — supposedly caused by major selloff — the buy figure went up.
Coinbase recorded a significant increase in buying activity, totaling 69% more buying than selling.
Unsurprisingly, most customers chose to buy Bitcoin with a credit card, which found itself in more than half of the trades and deposits. However, the coin was also followed by the other two top cryptos, ETH (67%) and XRP (65%).
The exchange seems to have found this behavior worth reporting, but it seems unsurprised. It stated that: “Bitcoin was created for a moment like this. Inscribed into its Genesis Block is the phrase “Chancellor on brink of second bailout for banks,” an homage to the government bailouts of 2008 and the last great financial crisis. The call-out is a subtle nod to the need for a sovereign form of money without any central intermediary.”
Traders did turn to crypto in difficult times
The exchange points out that the US government has already turned to “slashing interest rates, passing large stimulus packages, and infinite quantitative easing, Bitcoin will soon do the opposite in the next Bitcoin halving. The contrast could not be more stark.”
Coinbase commented on the customer behavior further. It said that it saw record-breaking numbers within only 48 hours of the drop. The deposits surged by 5 times, with a total of $1.3 billion. It started receiving new users twice as quickly as it usually does. Meanwhile, the number of traders surged by 3x, while the trading volume increased by 6x.
Similar behavior was also seemingly observed on other platforms. Even Twitter and Square CEO, Jack Dorsey, noted that there is a strong engagement and volume for Bitcoin on Cash App.