Interest in trading in bitcoin and other cryptocurrencies dropped as the coronavirus started to spread around the world, but new data from Revolut indicates a return to normal levels.
Having looked at data from its three million UK users using its crypto trading features, it found that interest in crypto seemed to follow the confidence in markets in general.
By mid-March, the financial markets spiralled into freefall. Mirroring this, Revolut noticed that the average amount of cryptocurrencies bought by UK users fell by 58% and that the per trade amounts dropped by 52% as lockdown restrictions were imposed on the country.
Interest in cryptocurrencies remained relatively stable until the week commencing 20th April when, driven by a BTC surge, interest in the market began to increase and users began to purchase more and at higher values. From 20th April to 4th May, the number of users buying cryptocurrencies rose 68%, the average amount of cryptocurrency bought by users increased by 57% and the amount bought per trade increased 63%.
Bitcoin remained the most popular cryptocurrency throughout the period, followed by Ripple, Ethereum and Litecoin.
On another note, Revolut also noted that different age groups traded differently. Those in the 55-64 bracket buy at the highest value of £345 per trade, whereas those in the 18-24 age group trade at the lowest value, at £109 per trade. Bitcoin is the most popular cryptocurrency to both buy and sell across all age groups.
While crypto trading trends were replicated broadly across Europe, Revolut’s data highlighted that Brits trade at considerably higher volumes and per-trade amounts compared to their European counterparts. From week commencing 16th March to week commencing 18th May, those in the UK bought an average of £399 per week of cryptocurrency, whereas across Europe as a whole, this sat at £280. In the UK, the average transaction for buying crypto was £231 during lockdown, a figure which dropped by 27% to £168 across the whole of Europe.
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