Crypto apps rally alongside bitcoin prices

The correlation between the bitcoin (BTC)/crypto market and the usage of investing apps, particularly those related to crypto, is self-reinforcing. During the recent price rally, history repeated itself: as prices surged, so did the rankings of these apps.

This trend reinforces a loop wherein the rally amplifies the interest of retail investors, and these newcomers, in turn, contribute to further price growth.

Let's examine the data from Appfigures.com regarding iPhone app usage in the US from recent weeks up until March 5th, coinciding with BTC's new all-time high price of just above $69,000.

Apps offering BTC and crypto trading opportunities in the US accelerated a climb in their rankings around February 24th-27th, correlating with bitcoin's sharp ascent from nearly $51,000 to $57,000.

While the outcomes vary among different apps, many of them continued to ascend until March 5th.

Leading investing and finance-related apps, such as Cash App, PayPal, and Venmo, which offer BTC and/or crypto investments, remained relatively stable during this period. However, other platforms experienced significant increases in rankings.

For instance, Robinhood, which offers a wide range of investment products, including BTC and crypto, surged from the 18th position on February 26th to the 3rd position on March 5th in the finance category. In the first five days of March, it climbed from the 172nd to the 54th position in the overall rankings. This momentum was also likely fueled by its provision of investments in BTC ETFs (exchange-traded funds), a highly sought-after investment vehicle in the US that has largely contributed to the recent rally. (Learn more about about Bitcoin ETFs here.)

A close contender, the major crypto exchange Coinbase, made substantial gains in just over a week, jumping from the 23rd to the 3rd position in the finance category. On March 5th, it also ranked as the 55th most popular app overall, a significant increase from its position at 168th at the end of February. Additionally, it skyrocketed among the top apps, moving from the 430th position to 49th. Furthermore, another app from the same company, Coinbase Wallet, experienced a surge in popularity, rising by 43 positions to the 13th spot in the finance category and reaching the 133rd position in the overall rankings.

BTC price in a month:

Coinbase iPhone app ranking from February 6th to March 7th in the US

Smaller success on Android

Interestingly, it wasn't just trading apps that experienced a surge in popularity. CoinMarketCap, a prominent BTC and crypto market data provider, embarked on its ascent in the rankings slightly earlier than most crypto exchanges. From February 23rd to March 5th, it soared from the 189th position to the 68th in the finance category.

Meanwhile, in the realm of Android OS apps, it appears that similar apps had less success. For instance, Robinhood managed to improve its position only from 37th to 23rd in the finance category, while Coinbase reached the 24th spot in the same category after standing at 43rd at the end of last month.

Another noteworthy observation is the fluctuating popularity of the app from investment powerhouse Fidelity, which offers BTC and crypto investments and has its own BTC ETF. However, on March 5th, among the top apps on iOS, it surged from the 243rd position to the 186th.

In comparison, Vanguard, an ETF giant that decided not to allow its clients to invest in BTC ETFs, remained largely unchanged.

As the bitcoin rally cooled off after reaching its all-time highs, most crypto apps also experienced a decline in popularity. For instance, on March 7th, Coinbase ranked 8th in the finance category and 97th overall. Meanwhile, Crypto.com managed to move up two positions and, as of March 7th, was ranked 7th in the same category.

What’s next?

With the BTC rally expected to resume soon, we may witness BTC and crypto investment apps once again gaining traction. However, before BTC investment bulls embark on another run, the market could witness significant volatility in both directions. Some analysts anticipate BTC dropping to the mid $40,000s in the next few weeks, while others point to strong demand from ETFs and estimate that the price of BTC will soon reach $76,000. (So far, BTC has almost tripled in value over the past year). Additionally, it will depend on how many long-term investors decide to take profits at the current level.

On the other hand, analysts largely agree that this BTC rally differs from previous ones, necessitating a revision of all previous models. One of the reasons is that this time, the new all-time high was reached just before the so-called Bitcoin halving, which has never occurred before. The halving happens automatically every four years, cutting the supply of new BTC in half. Currently, it stands at around 900 BTC per day, and in April, it will be reduced to around 450 BTC per day at a time when demand for the most popular crypto asset is increasing.

Therefore, if these narratives unfold as expected and demand for BTC continues to outpace supply, we may witness another surge in the rankings of crypto apps.