Unusual behavior, which marks the difference between investors in Argentina and those from other parts of the world, is highlighted by the Lemon exchange in its most recent report.
As the results of the the research carried out by the Argentine platform on the performance of its users during the first half of 2024, in the country of tango the days of greatest purchase of Bitcoin (BTC) are those in which the Cryptocurrency experiences its biggest price drops.
Hence, the so-called “black monday”» that most markets experienced globally on August 5 – including cryptocurrencies – stands out in Argentina as One of the biggest BTC buying days.
On that date the price of the digital currency fell to its lowest price since mid-February, trading at below USD 50,000This is after having reached a new historical maximum of USD 73,000 in March, remaining at an average of USD 60,000 in the following months.
They also fell with bitcoin more than 1,000 cryptocurrencies, along with most stock exchanges globally. A situation that caused panic among investors, leading many of them to liquidate their holdings or become paralyzed.
This is why, according to Lemon, the behavior of Argentines during price collapses differs from that adopted by most users in other countries, where the most common attitude of investors is is to stop their purchases to wait for market developments. There are rare occasions when they choose to buy more, as in the case of Argentina.
The behavior has been recurrent throughout this year, as shown in the Lemon graph inserted below. There are peaks in the volume of bitcoin purchases that coincide with price drops. The highest purchase volume It was presented precisely on August 5th.
Argentines buy more BTC when the price falls. Source: Lemon.
It is understood that the strategy followed by Argentine Bitcoiners is the one known as buy the dip (buy cheap). It is the expression used by traders when they buy cryptocurrencies in times of corrections and falls, accumulating coins in the hope that the price will go up later.
This is a bet on the recovery of the value of bitcoin. long term. A feature that makes the coin stand out created by Satoshi Nakamoto over other assets. This, taking into account that -since 2014- the historical trend of the cryptocurrency registers a compound annual growth rate of more than 60%.
On this topic, the exchange analysts also remember that, in Argentina, bitcoin is considered one of the main store of value assets. «People accustomed to economic volatility of the country take advantage of the large falls to buy more, protect their savings and generate profits,” the document states.
The above explains why bitcoin and the stablecoin USDT are the most purchased currencies, both in Argentina and in other Latin American countries. A trend that is growing and what makes it Lemon users’ wallets are composed by 80% for these two cryptoassets.
As CriptoNoticias has reported, despite the fact that bitcoin purchases in the region have registered a decline during 2024, the pioneering cryptocurrency remains the leaderThis is confirmed by a study carried out by the Bitso exchange, which also places BTC and USDT as Latin Americans’ favorites.
In closing, Lemon points out another of the particularities of the ecosystem that he highlights the level of adoption of Argentines. This indicates that 4 out of 10 people who open a cryptocurrency app in Latin America do so from the South American country.
He concludes that all this has occurred in a context where the government of Javier Milei has made some progress in regulation. They refer to the creation of a exchange registry Now the new measures that allow laundering cryptocurrencies.
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