- While institutions are selling off, retail traders are buying
- Trading volumes are increasing due to the turmoil in the cryptocurrency market
It is no news that the dreadful widespread disease Coronavirus, also known as COVID-19, has not only caused worldwide panic and pandemic, but has also affected the economies of many nations. Due to this, the stock markets have been on a downtrend and even cryptocurrencies aren't spared as investors have started selling off their Bitcoin.
However, retail investors are purchasing these Bitcoins sold by institutions with the hope that the epidemic will blow over soon and the market will rise again. As reported by market participants, they are simply buying low with the aim of selling high much later.
Stock markets down, trading volumes high
Although the charts might be flashing lots of red at the moment, some businesses are benefiting from the increased activity in the markets. River Financial, a Bitcoin inclined brokerage that started only three months ago, has recorded more trading volume in March than in all other months combined. They also recorded a 20% increase in the number of clients that make use of their platform. Their interest in Bitcoin, especially first-time buyers, goes to show how retail buyers have faith in the fact that the market will eventually rise and buying at current prices will turn out to be a wise investment.
Although River Financial is relatively new in the business, even established players such as Gemini have also recorded a spike in trading activity over the weekend. Their head of communications, Carolyn Vadino, confirmed this and added that they expect to see volume to continue being higher than normal during these uncertain periods.
An over-the-counter (OTC) trader in Latin America also noted that he has experienced double or triple the average amount of buy orders he processes since the massive fall on Thursday. While it seems like everyone is trooping in to buy more coins, there are also many trapped in the market looking for a way out.
Possible imbalance in the Bitcoin market
Another OTC trader in Latin America also confirmed that companies with massive leverage loans are also selling off their Bitcoins and the retail traders are stopping at nothing to buy up all these coins. The trader, however, expressed his fear at the large imbalance this might cause to the market at large.
While institutions are selling off, retail traders are buying
Trading volumes are increasing due to the turmoil in the cryptocurrency market It is no news that […]