Five Bitcoin (BTC) exchanges have reported a surge in the number of their users this month, a bullish report for the cryptocurrency amidst the crisis the world is facing right now. According to industry analysts, more and more people are flocking to exchanges.
Notably, the fear sprung out from the lockdown imposed by governments worldwide in an attempt to defeat the coronavirus pandemic. This time, the trading volumes on crypto exchange exhibit the edge of Bitcoin against the traditional financial markets.
Pierre Rochard, a BTC strategist at Kraken, commented that the figures represent the desire of the people to move away from the traditional financial system. He emphasized that they are not just simply bored of being under quarantine or lockdown; instead, they want to unleash their protests, and Bitcoin is giving them a way to do so.
The CEO of Luno, Marcus Swanepoel, said that it’s reassuring to see that traders still trust Bitcoin despite being surrounded by uncertainties in connection with the downfall of other industries. He expressed his delight for the unwavering support.
Meanwhile, the director of OKex’s financial market, Lennix Lai, stressed that the noticeable uptick in new users is not only a result of the coronavirus outbreak. Notably, people want to take advantage of falling crypto prices as well.
Is Bitcoin moving in the opposite direction?
While the data from several exchanges show a massive increase in new signups, it seems that the data about BTC being withdrawn from crypto exchanges show an opposite trend. Glassnode, a crypto market intelligence company, reported that the figure is on the rise and that it maintains a steady pace. Notably, the balances of Bitcoin on exchanges have hit the lowest level in the last eight months.
The increased volatility, according to industry analysts, seems to be pushing traders to seek haven in stablecoins such as Tether (USDT). Data website Viewbase revealed that in the last seven days, Tether had recorded an influx worth $223 million.
However, the CEO of Kraken, Jesse Powell, remained confident of the cryptocurrency. In a Forbes interview, he predicted that Bitcoin, along with the entire crypto industry, would exhibit a more fantastic performance in the months to come.