On March 12, 2020, the crypto market experienced a flash crash that coincided with the capital markets around the world crashing as well. The event had been marked by hundreds of liquidations and selloffs. However, Coinbase said that on the platform, retailers are buying during that time.
Revealed to The Block, Coinbase’ retail clients bought a lot of Bitcoins during the market crash. Coinbase customers buy 60% more than they sell. However, during the market crash, customers buy 67% more than they sell. Coinbase further revealed the favored cryptocurrency is still Bitcoin, followed by Ether and XRP.
Here are the records from Coinbase during the market crash of March 12 – 13, 2020:
- Total volume increased 6x
- Number of traders increased 3.5x
- Buy ratio at 69% (+13%)
- Total volume increased 7x
- Number of traders increased 5x
- Buy ratio at 67% (+9%)
- Other assets
- Total volume increased 7x
- Number of traders increase 5x
- Buy Ratio at 65% (+1%)
During the crash, a number of exchanges went down, including BitMEX and Gemini, while others load very slow, including OKEx and Binance. BitMEX attributed it to a hardware issue with their cloud provider.
Bitcoin went as low as sub $4,000 at that time, which trigger a number of liquidations. BitMEX alone posted a total liquidation of $1.1 billion.
Coinbase previously said it experienced a surge in traffic during the market collapse. CEO Brian Armstrong said that while other exchanges were experiencing outages at that time, Coinbase remained operational. He credited the work of the Coinbase team, who were preparing for a crisis for some years now, since the 2017 bull run, to be exact. He specifically credited the engineering team. In an interview with Coindesk, Coinbase said some of the work included horizontal scaling which enables the exchange to view data stored on its servers while also adding data at the same time, all this while the entire operation does not slow down.
Source: The Block
This article is published on BitPinas: Coinbase: Retail Customers Bought Bitcoin During March 2020 Market Crash
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