Demand for Bitcoin does not Slow through March Price Crash
By Luke Flowers – Cryptocurrency Enthusiast
Bitcoin, the leading digital asset on the market saw no loss of demand as people were buying cryptocurrency during the march downfall of price, as observed by Coinbase.
Immediately after the WHO publicly stated that Coronavirus had developed into a pandemic, investors began to sell large amounts of their liquid assets, stocks and Bitcoin. Flights across Europe quickly halted, and countries began to take preventive measures of lockdown.
In all such circumstances around the world, the cryptocurrency market did not stand alone in suffering. Gold, equity, and even oil prices dropped. The amount of leverage in the local markets is approximately 2-3x. In contrast to this, Bitcoin has different exchange offers of 100x and up leverage but this can be risky in the case of the market going against expectation.
The same report also states that the ratio of digital asset buyers is usually 60%, which is 50% more than the sellers. However, during the crash it raised to 67%. Expectedly, users choose to buy Bitcoin the most among all cryptocurrencies.
Coinbase also noticed a 5x increase in the deposits of cash and cryptocurrency. Added to this, a 2x increase in new-user sign-ups was noticed. The nature of cryptocurrencies themselves leaves one to question if their position within financial markets is strengthened by the foundations they are built on.