Analysts from the crypto intelligence firm Coin Metrics say they’ve been witnessing diverging behaviors from retail investors and institutional traders ever since the March 12th sell-off.
After the crypto market cratered, the blockchain analytics company reports that a significant number of retail investors appear to have jumped on the Bitcoin bandwagon to buy the dip.
“The number of addresses holding relatively small amounts of BTC has been increasing since the March 12th crash… This could signal that adoption is growing, as new users start acquiring relatively small amounts of BTC.”
Meanwhile, the chart also shows institutional Bitcoin traders likely sold their positions during the meltdown.
The turquoise line, which accounts for the number of addresses holding between one hundred thousandth (1/100K) and ten thousandth (1/10K) of the supply, nosedived after March 12th and kept falling for the rest of the month.
Coinbase recently released data on what happened at the exchange during the first 48 hours after Bitcoin’s March crash that pushed BTC below $4,000.
The exchange says it experienced a five-fold increase in cash and crypto deposits. The influx totaled $1.3 billion, with 67% of the traders buying the dip.