Active Bitcoin Bargain Hunters Utilize Kraken and Coinbase, Data Reveals

Bitcoin bargain hunters are actively engaging on Kraken and Coinbase, acquiring coins at perceived discounts as selling pressure from other exchanges weighs on the leading cryptocurrency. Data compiled by London-based CCData reveals that the buy-sell ratio on Kraken and Coinbase has averaged 250% and 123%, respectively, this month. A ratio exceeding 100% indicates more buy orders than sell orders, indicating a net bullish sentiment.

At the start of the month, Bitcoin’s price experienced a decline from $60,000 to nearly $52,500 before rebounding to $58,000 this week, according to CoinDesk data. However, prices are down by over 7% for the third quarter. The average buy-sell ratio points to stronger buying pressure on Kraken and Coinbase, with ratios of 250% and 123%, respectively, in contrast to near-parity on Bybit and Binance, which have ratios of 99% and 97%.

Hosam Mahmoud, a research analyst at CCData, noted, “Although these observations do not provide a definitive conclusion, they suggest that Kraken and Coinbase have recently been the preferred platforms for accumulation.” Instant or day traders on Bybit and Binance are likely retail investors, while bargain hunting on Kraken and Coinbase is likely driven by large investors.

This month’s average trade size for bitcoin-tether (BTC/USDT) spot pairs stands at $898 on Bybit and $747 on Binance, significantly lower than the averages of $2,148 and $1,321 on Kraken and Coinbase, respectively, as reported by CCData. Mahmoud highlighted, “This suggests that during this period, Kraken and Coinbase are attracting larger trades, likely from institutional or long-term investors, while Bybit and Binance cater more to smaller, frequent trades.”

The data indicates that relatively larger orders on Kraken and Coinbase signal bargain hunting by significant traders. The activity on Kraken and Coinbase underscores a preference for accumulation among larger investors, while Bybit and Binance attract smaller, more frequent trades. This dynamic suggests a nuanced investor behavior pattern within the cryptocurrency market.

Edited by Parikshit Mishra.