How Bitcoin Investors Reacted To COVID-19
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This year has gone very quick despite a plethora of events taking place. The Black lives matter movement took full effect following the death of George Floyd in Minneapolis and of course, coronavirus became a thing.
As the pandemic began, retail and institutional bitcoin investors needed to act fast but they didn’t do the same as each other. This is according to research from OKEx Insights and Catallact.
The research looked into on-chain bitcoin transaction data from the start of this year to August 2020. It found that retail investors mainly pulled back in order to wait and see what would happen with the leading cryptocurrency.
Looking at the data, retail transactions decreased and went away from the prices trend. This was a big indicator that retail investors were hoping for the best when it came to the flagship cryptocurrency. This all occurred around May.
Interestingly though, as bitcoin was getting closer to $10,000, the number of transactions between 1000 and 5000 bitcoins were increasing. This was from the end of June as the price started to consolidate.