Bitcoin
Bybit Report: Bitcoin crushes stablecoins!
9:19 am ▪ 3 min read ▪ by Eddy S.
In the dynamic cryptocurrency landscape, institutional and retail investors are constantly reevaluating their asset allocation strategies. A recent report from Bybit reveals an interesting trend! A decrease in exposure to stablecoins in favor of increased interest in major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
Bitcoin is gaining ground against stablecoins!
According to the Bybit report covering the period from December 2023 to May 2024, BTC remains the most held asset by users. It represents 26% of the total assets of the crypto platform’s users. This preference for Bitcoin underlines its role as cornerstone in cryptocurrency investment plans.
Furthermore, the share of stablecoins in total assets has almost halved. They went from 50.2% in December 2023 to 42.8% in May 2024. This move away from stablecoins suggests a growing reliance on more volatile crypto assets as core components of investment portfolios.
Crypto investors are positioning themselves on safe values
The report highlights notable differences between institutional and retail investment trends. Institutions are more focused on Bitcoin and Ethereum, perceived as large-scale assets. In May, institutional positions in BTC and ETH were concentrated at 38.9% and 20.3%, respectively. On the other hand, retail traders show preference for BTC on ETH, although less pronounced than that of institutions.
The move away from stablecoins and toward more established cryptocurrencies like Bitcoin represents growing confidence in the ecosystem. Traders are beginning to value cryptocurrencies as both safe-haven assets and growth assets, depending on market conditions. This indicates a growing maturity of the crypto market, where institutional and retail investors increasingly recognize the long-term potential of these digital assets in addition to their short-term volatility.
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Eddy S.
The world has evolved and adaptation is the best weapon to survive in this universe. Crypto community manager at the base, I’m interested in everything you touch on the front or back of the blockchain and its derivatives. In the option to share my experience and make you aware of a domain that I am passionate about, it is good for you to read informative and contract articles as you go.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.