New research from OKEx Insights and Catallact show that individual and corporate bitcoin investors are taking quite different approaches with the onset of the COVID-19 global pandemic.
January-August 2020 research examining Bitcoin transaction data within the chain reveals that individual investors have largely retreated and expect to build a Bitcoin Strategy. Institutional investors, on the other hand, have largely opted to accumulate Bitcoin. August September and early September, when Bitcoin prices fell, the report ignores transactions.
Individual transactions representing less than a tenth of the cryptocurrency account for much of the Bitcoin movement and more closely track price fluctuations. These investors tend to be more affected by high volatility and sudden price falls.
According to the data, individual transactions declined and moved away from the price trend. In other words, during Bitcoin’s clustering period following the crash in May, individual investors followed a wait-and-see approach.
Medium-sized transactions associated with miners and larger individual players were more circumspect at the start of the outbreak. But that behavior lasted until June when activity was back on the rise.
As Bitcoin approached $10,000, the number of transactions involving 1,000 to 5,000 bitcoins increased by the end of June, even as the price began to consolidate.
“This rise suggests that organizations and / or larger individual players are turning to Bitcoin hoarding as central banks ‘ economic measures spark interest in solid assets,” the report said.
