CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
    • Spanish
    • Turkish
    • German
    • Bulgarian
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • CryptoPotato Spanish
  • CryptoPotato Turkey
  • CryptoPotato Germany
  • CryptoPotato Bulgaria
  • Market Updates
  • BTC Analysis
  • ETH Analysis
  • XRP Analysis
  • Interviews
CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
    • Spanish
    • Turkish
    • German
    • Bulgarian
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • CryptoPotato Spanish
  • CryptoPotato Turkey
  • CryptoPotato Germany
  • CryptoPotato Bulgaria
Home » Crypto News » Report: Bitcoin Investors Were Buying The Dip On Coinbase During The March Price Drop

Report: Bitcoin Investors Were Buying The Dip On Coinbase During The March Price Drop

Author: Jordan Lyanchev

Last Updated Apr 6, 2020 @ 10:51
Getting your audio player ready...

The most popular U.S.-based cryptocurrency exchange, Coinbase, saw an increase of deposits and buy orders during the panic sell in mid-March. While customers were purchasing various digital assets, Bitcoin was the clear leader with the most buyers during the drop.

Coinbase Reviews The March Panic Sell

12-13th of March marked one of the most violent price plunges in cryptocurrency history. Bitcoin, and most alternative coins, decreased with as much as 50% at one point. This came after the WHO proclaimed the COVID-19 as a pandemic, President Trump halted flights from Europe, and numerous countries initiated radical measures, including full lockdowns.

The cryptocurrency market was not the only one suffering. Equities, oil, and even gold plummeted, as investors were panic selling all of their liquid assets to receive cash.

Coinbase recently issued a report on what transpired during those hours. It reviewed the performance from most markets and outlined that large leverage trading positions could be related to the massive plunge amongst cryptocurrencies:

“Traditional equities markets limit the amount of leverage to ~2-3x. In contrast, Bitcoin has some offshore exchanges that offer 100x+ leverage, where $1 of Bitcoin could be used as collateral to back $100 in purchasing power. To be fair, this is very risky – a position leveraged to 100x would force-closed if the market moved just ~1% against you. So most traders hold positions at a more sensible 5-30x leverage, but still notably higher than 2-3x.”

The report informed that hours before the crash, the aggregate size of all leveraged contracts on exchanges hovered around $4 billion.

Bitcoin Futures Open Interest March 2020. Source; skew.com
Bitcoin Futures Open Interest March 2020. Source; skew.com

Investors Buying The Dip

According to the document, customers buying digital assets on Coinbase are generally 60% more than those who sell. During the crash, however, the number jumped to 67%.

In fact, the popular exchange saw a 5x increase in cash and cryptocurrency deposits, a 2x rise in new-user signups, 3x in trading users, and even more impressively – 6x surge in total traded volume.

The most bought asset, somewhat expectedly, was the primary cryptocurrency – Bitcoin. Over half of all deposits and trades involved BTC. Naturally, the second and third-largest coins by market cap, Ethereum (ETH), and Ripple (XRP) were next.

From the lower-seeded altcoins, customers were depositing and buying significant quantities of Tezos, Chainlink, Litecoin, and Bitcoin Cash.

Coinbase Volume Mid-March. Source: coinbase.com
Coinbase Volume Mid-March. Source: coinbase.com
SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

Tags: Bitcoin Bitcoin (BTC) Price Coinbase Ethereum Ripple
Enjoy reading? Share with your friends
Facebook Twitter LinkedIn Telegram

About The Author

Jordan Lyanchev
More posts by this author

Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017 and now serves as CryptoPotato's Assistant Editor-in-Chief. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn

Join Our Community

FacebookX YouTubeTelegram


Editorials
10 Best Meme Coins to Watch in June 2025

10 Best Meme Coins to Watch in June 2025

7 Best Meme Coin Presales to Watch in June 2025

7 Best Meme Coin Presales to Watch in June 2025

Toobit Review 2025: Is Toobit a Safe Crypto Exchange?

Toobit Review 2025: Is Toobit a Safe Crypto Exchange?

Hyperliquid Bridge: How to Bridge USDC to Hyperliquid

Hyperliquid Bridge: How to Bridge USDC to Hyperliquid

11 Best Crypto Presales to Consider in June 2025

11 Best Crypto Presales to Consider in June 2025

Need for Speed – Only Ultra-Fast Blockchains Will Win the Adoption Race (Opinion)

Need for Speed – Only Ultra-Fast Blockchains Will Win the Adoption Race (Opinion)

The 5 Best Bitcoin Mining Pools in 2025: Complete Guide

The 5 Best Bitcoin Mining Pools in 2025: Complete Guide

Join Our Newsletter
Become a CryptoPotato VIP
One Weekly Email Can Change Your Crypto Life.
Sign-up FREE to receive our extended weekly market update and coin analysis report
We NEVER send spam. You can unsubscribe at any time.
Invalid email address
Thanks for subscribing!
Footer Logo
About
Advertise on CryptoPotato
About Us | Contact Us | Careers
Editorial Policy
Terms of service | Privacy Policy | GDPR
More Sections
IEO List | Evaluations
Airdrops
Scholarship
Disclaimer
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
© Copyright CryptoPotato 2016 - 2025
Scroll to top
One Daily Email Can Change Your Crypto Life.

Sign-up FREE to receive our extended daily market update and coin analysis report

We never send SPAM. You can unsubscribe at any moment
Invalid email address
Thanks for subscribing!