Robinhood Users Rotate Beyond BTC, ETH As Dip-buying Grows

BTC is trading around $68,000, slightly up on the day but down over the week, and Robinhood’s crypto head says their users are using this environment to buy dips and diversify beyond just BTC and ETH.

Cryptocurrency investors are diversifying their holdings beyond Bitcoin and Ethereum during the current market decline, according to a Robinhood executive.

Johann Kerbrat, head of crypto at Robinhood, stated in a recent interview that many platform users view the ongoing market downturn as an opportunity to purchase digital assets at lower prices. However, trading activity has expanded beyond the largest cryptocurrencies, Kerbrat said.

“Customers see the current market as a buying opportunity. However, they are expanding their transactions beyond the two or three most popular cryptocurrencies to include a wider range of assets,” Kerbrat stated.

The executive reported that clients are actively using their tokens rather than simply holding them on the platform. Interest in staking has remained strong since Robinhood launched the feature in December, according to Kerbrat.

The shift in investor behavior comes as overall market sentiment remains at extreme levels of fear, according to market indicators. U.S. spot Bitcoin exchange-traded funds have experienced net outflows for several weeks, data shows.

Despite the negative market conditions, interest in decentralized finance use cases is increasing, Kerbrat noted.

Bitcoin and altcoin prices have continued to decline in recent weeks, extending losses across the cryptocurrency market.