Institutional adoption increases despite crypto winter
Accounts above 10,000 Bitcoins have seen an increase in accumulation in the current bear market, which is likely due to increased institutional adoption according to CryptoCompare, an FCA authorized and regulated digital asset provider
CryptoCompare said in a report, Q4 Crypto Outlook: Is This Bear Market Different?to toast bear market in 2017 all holders in various wallet sizes panic sold.
“In this bear market, we have seen a consistent accumulation in almost all accounts,” CryptoCompare added. “Accounts above 10,000 Bitcoins have seen an increase likely due to increased institutional adoption.”
/3 Download our latest Q4 Outlook report for a detailed examination of volatility and bear market trends.
— CryptoCompare (@CryptoCompare) 7 November 2022
Another difference is that the average daily volume during the last bear market was $12 billion, while today’s average daily volumes have risen $78 billion. CryptoCompare noted that dDerivative futures volumes have fallen less than spot volumes in this bear market. Futures volumes have fallen 23.8% to $2.9 trillion since peak volumes in November 2021, compared with a 43.4% decline in spot markets to $1.56 trillion.
“Given the high amount of speculation in digital asset markets, it is not surprising that derivatives have not seen as much of a decline as spot volumes,” the report said.
CryptoCompare defined bear markets as sustained periods of price decline, usually triggered by a 30% decline. So far this year, the market value of digital assets has fallen 60.3%, with Bitcoin’s price drop 73.2%.
“Despite the significant drop, it is possible that we have yet to see the bottom of this cycle given worsening macroeconomic conditions that will affect risk assets,” said Crypto comparison.
Peter Johnson, co-head of venture at Brevan Howard Digital, also highlighted the increased institutional involvement in crypto:
1) In one @Rendering / @DigitalAssets survey of 1,052 institutional investors – 58% currently hold digital assets, and 74% of investors plan to purchase or invest in digital assets.
— Peter Johnson (won’t dm) (@TheChicagoVC) 6 November 2022
– 88% are comfortable with stablecoins and 49% would be willing to forego overnight returns on cash deposits to send domestic payments 24/7/365, 69% for cross-border payments and remittances.
— Peter Johnson (won’t dm) (@TheChicagoVC) 6 November 2022
3) @myntbase Third quarter earnings report: “As of the end of the quarter, approximately 25% of the top 100 hedge funds in the world by reported assets under management have chosen to onboard with Coinbase.”
— Peter Johnson (won’t dm) (@TheChicagoVC) 6 November 2022
5) @CBOE announced that they are distributing market data on @PythNetwork – further cementing the potential impact of Pyth on the multi-billion dollar market data business.
— Peter Johnson (won’t dm) (@TheChicagoVC) 6 November 2022
7) Kevin Bowers, Gigabrain and Chief Scientist at @jump_ held a 🤯 presentation at @SolanaConf About @jump_firedancerthe new Solana validation client that Jump is building.
— Peter Johnson (won’t dm) (@TheChicagoVC) 6 November 2022
9) @DigitalAssets launches a commission-free crypto trading platform (Fidelity Crypto) for retail investors to trade BTC and ETH through Fidelity.
— Peter Johnson (won’t dm) (@TheChicagoVC) 6 November 2022
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