Bitcoin Bargain Hunters Favor Kraken and Coinbase Amid Price Fluctuations

Bitcoin Bargain Hunters Active on Kraken and Coinbase

In a notable trend, Bitcoin (BTC) bargain hunters are increasingly making their presence felt on platforms like Kraken and Coinbase. These investors are actively purchasing coins at what they believe to be discounted prices, despite the selling pressure impacting the leading cryptocurrency across other exchanges.

Data compiled by the London-based firm CCData reveals intriguing insights into trading behaviors this month. The buy-sell ratio, which measures the volume of buy orders against sell orders, has shown averages of 250% on Kraken and 123% on Coinbase. A buy-sell ratio exceeding 100% indicates a stronger volume of buys compared to sells, suggesting a net bullish sentiment among traders.

Bitcoin’s price trajectory at the start of the month was less than favorable, plummeting from around $60,000 to approximately $52,500. However, it has experienced a recovery, reaching $58,000 this week, according to CoinDesk data. Nonetheless, the cryptocurrency remains down over 7% for the third quarter.

According to Hosam Mahmoud, a research analyst at CCData, “The average buy-sell ratio indicates a significantly higher buying pressure on both Kraken and Coinbase, with ratios standing at 250% and 123%, respectively. This contrasts sharply with the near-parity observed on Bybit and Binance, where the ratios are 99% and 97%.”

Mahmoud further elaborated, “While these findings do not lead to definitive conclusions, they suggest that Kraken and Coinbase are currently preferred platforms for accumulation among investors.”

It appears that the recent activity on these exchanges can be attributed to larger investors engaging in bargain hunting, as opposed to the instant or day traders typically observed on Bybit and Binance, which likely cater more to retail investors.

This is further supported by the average trade size for Bitcoin-Tether (BTC/USDT) spot pairs during this month, which stands at $898 on Bybit and $747 on Binance. In contrast, the average sizes on Kraken and Coinbase are significantly higher, at $2,148 and $1,321, respectively, according to CCData.

Mahmoud concluded, “These figures indicate that Kraken and Coinbase are attracting larger trades, likely from institutional or long-term investors, whereas Bybit and Binance seem to facilitate smaller, more frequent trades.”