Bybit Research: Bitcoin Liked By Institutional Traders, Altcoin Is Ignored

Big traders prefer BTC over other crypto assets. (Photo; Doc. Pexels)

JAKARTA Bitcoin, the largest crypto asset by market cap, has attracted the attention of institutional traders. At the same time, institutional traders show their skepticism about crypto assets other than BTC, or alternative coins (altcoins).

According to recent research data from the crypto exchange Bybit, institutional traders have strong positive sentiment towards Bitcoin. As for Ethereum, their sentiment still mixes between positive and negative. At the same time, they are skeptical of altcoins.

This research provides an in-depth picture of trade behavior and asset allocation amid the large market movement from December 2022 to September 2023.

Bybit's research also reveals major changes in the institutional traders' approach to major cryptocurrencies, bitcoin. Bitcoin ownership among this group has increased rapidly, up double in the first three quarters of 2023.

In September, half of the institutional trading portfolio was allocated to Bitcoin. This is in line with the optimistic market sentiment towards this major cryptocurrency, which is driven by hopes for regulatory progress and the potential approval of the Exchange-Trad Fund (ETF) Bitcoin.

On the other hand, Ether's appeal has decreased since April, with a decrease in the percentage of ownership in most traders. Then, in September, the number of Ether owners experienced a sharp increase, especially among institutional traders.

Furthermore, Bybit's research states that the Joint Trading Account (UTA) offers a solution to address market volatility, enabling flexible leverage adjustments according to market conditions.

This study emphasizes the effectiveness of the UTA in managing asset allocations amid market movements, potentially preventing unnecessary liquidation during a period of high volatility.

Bybit research is focused on active users on the crypto exchange, in particular those who make more than 20 monthly trades. Bybit analyzes the important periods in the bullish market (January, March, April, and June 2023) and the bearish market (December 2022, May, and August 2023).

This research is the result of analysis of user trading behavior in various asset classes, carefully examining institutional traders (INS), VIP traders with assets of more than $50,000 (Rp776,500,000.00), and retail traders.