Exchanges Report Uptick In New Users and Trading, While Bitcoin Spending Drops

Like most other assets, bitcoin prices crashed in mid-March. 

From March 12–13, traders looking to sell the crypto transferred bitcoin into exchanges at unprecedented rates—9x the daily average—per Chainalysis. But new traders trying to buy the dip are unfazed. At least seven exchanges are seeing upticks in user registrations and trading volumes, The Block reports. 

And what about bitcoin the currency? 

  • Bitcoin spending on merchant services didn’t drop as much in March as Chainalysis expected. After all, online vendors are more likely to accept bitcoin than brick-and-mortar establishments. 
  • Gambling services have seen significantly fewer bitcoin inflows since the week of March 9. The NBA paused its season on March 11…

The biggest aberration: Darknet markets have tanked along with bitcoin prices. When bitcoin’s price dropped in the past, darknet spending typically held steady. That’s not happening now. “Perhaps darknet market customers aren’t buying as many drugs given the public health crisis,” Chainalysis speculates.

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