CoinMetrics: Private investors bought the most Bitcoin Drop, Big Ones sold on March 12th

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A new report on the “Network statusthe company CoinMetrics notes that retail or retail investors bought Bitcoin in the fall of Black Thursday as liquidity declines and institutional investors move towards the dollar. The B2C2 company confirmed the decline in liquidity in another report

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On March 12 Bitcoin suffered the call “black thursday“An enormous liquidation of more than 20%, which was accompanied by considerable losses in most of the main markets. However, the fall allowed “Some private investors have taken advantage of an excellent buying opportunity“”.

According to the latest report on the Network status (Status of the network) of the analysis company Blockchain CoinMetrics, “The number of addresses with relatively small amounts of BTC has increased since the decline on March 12“” Despite the fall, this shook some investors who bought Bitcoin after 2017.

CoinMetrics: Retailers take advantage of prices, and institutions go for the dollar

“”The number of addresses that contain between one billionth (1 / 1B) and one hundredth millionth (1 / 100M) of the total BTC offer (i.e. between 0.000000001% and 0.00000001% of the total offer) has increased increased by approximately 6% in the last 90 days “The report revealed. Likewise,”The number of addresses with a hundred millionth (1 / 100M) to a tenth millionth (1 / 10M) of the total offer increased by approximately 4% “”

According to the report, this increase has prevailed as Bitcoin it fell to an annual low of $ 3,800. With the increase in small purchases and new online wallets “This could indicate that acceptance is increasing. when new users start buying relatively small amounts of BTCHe suggested.

The medium indicates an important fact DeCryptOn the contrary, these trends do not guarantee that every new wallet is a new user. A user could share his inventory from Bitcoin between different addresses for example.

Boys come in, big ones come out

Despite all of this, the trend outlined in the report confirmed other evidence from the collapse that suggests more investors “relative“(Mothers and fathers after DeCrypt) bought in autumn. The Crypto Asset Management company Bit by bitFor example, it published the trading volume of popular exchanges the day after the crash, which showed new entries of USD 5 billion Bitcoin.

The founder of CoinMetricsNic Carter agreed DeCrypt that this pattern is reversed for some of the institutional investors that have entered Bitcoin after 2017. While the little one takes the opportunity to include Satoshis on his balance sheet, the big ones sell and move towards the dollar..

“”It seems to me that the recent collapse was mainly due to retailers buying the decline and institutional investors executing their margin calls (or margin trading) or leaving the market.Carter explained.

Liquidity of Bitcoin decreases

The general liquidity of Bitcoin Has “structurally reduced”From the eventSaid Carter. He cited two mutual funds from Bitcoin institutional grade (Adaptive capital and Cryptolab capital) that collapsed during the market crisis. Both exchanged views Bitmex, the exchange of Bitcoin most widely used for its derivatives market.

About the Liquidity drop from Bitcoin, an interesting finding evaluates it CoinDesk this morning on a report from the market maker OTC, B2C2who analyzes the expansión “drastically”In the gap between offers and requests from Bitcoin on the main stock exchanges after the fall of March 12-13.

After B2C2in the turbulent period from March 12th to 13th the dissemination of a buy or sell order 25 Bitcoins rose from 200 to more than 700 basis points in three major exchanges serving institutions.

Even B2C2 used the measure of 100 BTC as another reference order size later in your report. In this context, he reported that the spreads on the stock exchanges for the period from March 12 to 13 are even wider.

At the moment Bitcoin It rose about 14 percent during the week and is trading at $ 7,300. Now you can see the prices of Bitcoin and cryptocurrencies in your local currency thanks to crypto markets DailyBitcoin.

Sources: CoinMetrics, DeCrypt, CoinDesk.

Report by Arnaldo Ochoa / DailyBitcoin.

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