Numerous newcomers to cryptocurrencies suddenly find interest in Bitcoin | 01.05.20

The oldest cryptocurrency Bitcoin is repeatedly brought into play as a possible “safe haven” investment. In fact, according to a study, numerous new users have recently invested in crypto mother rock for the first time.

• Encryption exchanges have numerous new users
• Increased activities
• Many coins withdrawn from crypto exchanges

In recent weeks, more and more new users have had closer contact with Bitcoin for the first time. This comes from a report from the Glassnode analytics platform.

More users in encryption exchanges

Consequently, Bitcoin has recently experienced a real influx of new users. According to analysts’ report, cryptocurrency exchanges like Kraken, OKex, Bitfinex, Paxful and Luno have seen numerous new users since the start of blocking activities that governments around the world want to use to curb the spread of the crown pandemic. In Kraken alone, the number of registrations increased by 83 percent, the number of those who went through the verification process to be able to deposit fiat money immediately, increased by 300 percent at the same time.

Significantly more active new users

But not only the accounts on the platform would have experienced particularly strong growth, at the same time the activities of new users on the Bitcoin network would have accelerated. According to the information, these tripled in the period between mid-March and early April, from 6,000 to almost 17,000.

At the same time as this development, deposits on crypto exchanges have decreased significantly. According to Glassnode, more BTC were withdrawn from crypto exchanges during the corresponding investigation period. Instead, users prefer to store their digital currencies in cold wallets instead of trading with them. This suggests an intention to keep Bitcoin long-term, according to the report.

Fiscal policy supports Bitcoin

One possible approach to interpretation: New users would withdraw their money from the volatile and uncertain prospect of the stock market and instead invest in Bitcoin, which is therefore given the status of “safe haven”.

In fact, it is the current policy of international central banks that fears the devaluation of the fiat currency. However, numerous investors in real assets also have the massive flood of liquidity with which currency holders want to cushion the economic consequences of the crown pandemic. Gold and let Bitcoin escape. Recently, it has been correspondingly positive for the price development of the world’s largest cryptocurrency: Bitcoin has gained around 10 percent in the past month. The influx of new users could further intensify this trend in the future and boost the price of BTC.

Editorial office finanzen.at