Bitcoin (BTC) regains ground against stablecoins, Bybit report reveals

In the dynamic landscape of cryptocurrencies, institutional and retail investors are constantly re-evaluating their asset allocation strategies. A new report from Bybit reveals an interesting trend: reduced exposure to stablecoins in favor of increased interest in major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).

As the crypto landscape continues to evolve, a recent report by Bybit has revealed an interesting shift in asset allocation strategies among institutional and retail investors. The report covers the period from December 2023 to May 2024 and highlights a decrease in exposure to stablecoins in favor of major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). According to the report, BTC remains the most held asset by users, accounting for 26% of the total assets of users on the crypto platform. This preference for Bitcoin underscores its role as a cornerstone in cryptocurrency investment plans. Moreover, the share of stablecoins in the total assets has almost been halved, dropping from 50.2% in December 2023 to 42.8% in May 2024. This pivot away from stablecoins suggests growing confidence in more volatile crypto assets as integral components of investment portfolios.

The report also found significant differences between institutional and retail investment trends. Institutions are heavily concentrated on Bitcoin and Ethereum, which are viewed 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 a preference for BTC over ETH, although it is less pronounced than that of institutions. This shift away from stablecoins and towards more established cryptocurrencies like Bitcoin marks a growing confidence in the crypto ecosystem. Traders are beginning to appreciate cryptos both as safe-haven assets and growth assets, depending on the market conditions. This indicates a growing maturity of the crypto market, where institutional and retail investors are increasingly recognizing the long-term potential of these digital assets beyond their short-term volatility.

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