As the COVID-19 pandemic began, retail and institutional Bitcoin investors took very different approaches, new research from OKEx Insights and Catallact showed.
The research, which looked at on-chain BTC transaction data from January to the beginning of August 2020, found retail investors largely pulled back and took a wait and see strategy with Bitcoin. Larger, possibly more institutional investors, on the other hand, accumulated BTC. The report does not take into account transactions in the bulk of August and September when prices fell.
Retail transactions, those representing less than one-tenth of a coin, make up the bulk of BTC movement and more closely track price fluctuations. These investors tend to be more easily “‘shaken out’ of the market in times of high volatility and dramatic price declines,” the report noted, which is exactly what the researchers found.
The number of daily small BTC transactions decreased and took a wait-and-see approach once the price of BTC hit $10,000 in