When the COVID-19 pandemic began, individual and institutional bitcoin investors took vastly different approaches as new research by OKEx Insights and Catallact shows.

The study, which looked at BTC transaction data from January to early August 2020, found that retail investors have largely abandoned this and adopted a wait-and-see strategy with Bitcoin. On the other hand, larger and possibly more institutional investors have pooled BTC. The report does not include transactions for most of August and September when prices fell.

Retail transactions under a tenth of a coin make up the bulk of BTC’s movement and price fluctuations are closely monitored. The report, which the researchers found, says these investors are “easier” to exit the market during times of extreme volatility and sharp price drops.

According to the data, retail transaction volume decreased and “skewed from price action, indicating that retail investors have taken a wait-and-see stance as BTC has accumulated throughout the season since the crash” around May.

When the pandemic began, the average transaction attributed to miners and large retailers was more cautious. But this behavior appears to have continued until June, when activity returned again.

When data goes to track transactions over 1,000 BTC, it becomes interesting. With BTC approaching $ 10,000, the number of transactions from 1,000 to 5,000 BTC continued to rise from the end of June, even as the price began to consolidate.

This upward trend indicates the possibility that large institutions and / or players were concerned about collecting BTC when economic stimulus stimulated central banks to buy fixed assets. But since we cannot separate actual activity from the number of transactions, this is only a temporary possibility, “the report says.

The number of transactions of 5,000 Bitcoins and above also rose sharply from mid-May to mid-July, leading researchers to two possible conclusions: Cryptocurrency exchanges can exchange currencies in different wallets for various reasons, most likely due to security or access from large institutional investors. The market and BTC accumulated in anticipation of a price increase or decrease. The report suggests that the impact of COVID-19 on global markets may have prompted major investors to turn to BTC as a hedge against monetary inflation.

The OKEx report showed that the first months of the pandemic had an impact on how people moved in the market, especially when private investors left to wait for prices to return to normal. However, major investors bought into the flipping and started pooling bitcoins.

Cointelegraph reports that Bitcoin prices are slow and stable, which is not true, but it could reach $ 16,000 if the resistance level breaks.

Source: CoinTelegraph

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