According to the CryptoCompare 2022 Outlook Report for the digital asset sector, a new facet is beginning to emerge among BTC holders. According to the data, there is a discernible upward trend in the proportion of Bitcoin users who possess wallets containing more than 10,000 BTC tokens.
In addition, the research mentioned that this is probably because of the increased institutional acceptance of the asset, which is something that has been happening recently. In addition, the research went on to elaborate on how the accumulation tendency is changing the narrative at a time when Bitcoin failed to be the much-talked-about inflation hedge.
As a result of Bitcoin's failure to become the gold of digital assets, many people are beginning to wonder whether or not it is still relevant as a commodity that is suitable for times like these.
Because of inflation and rising interest rates, the two biggest cryptocurrencies, Bitcoin and Ethereum, will have performed in opposing directions by the year 2022. On the other hand, Bitcoin's volatility is beginning to level out in comparison to the prior downward patterns.
The annual volatility of Bitcoin reached a high of 79% during the bear market that occurred in 2018, while the rate currently stands at 63%. The fact that traders can now accumulate more tokens than they could in the past is a significant step forward.
In addition, the findings of the CryptoCompare analysis indicate that owners of crypto tokens are starting to accept the asset for what it is: a high-risk commodity. It's interesting to note that they appear to be less concerned with the concept that digital assets are a hedge against inflation now than they were before.
When taking into account the high level of speculation that exists within the digital asset ecosystem, the latest development is not surprising, as stated by the CryptoCompare website.
The Stability of Cryptocurrencies Is Driven by Speculation
According to the findings of the study, one of the primary reasons behind the remarkable consistency of the cryptocurrency derivative futures market is speculation. Futures prices were protected from falling by a significant amount thanks to speculation.
However, this is the case for spot trading, as the overall volume of this type of trading on the cryptocurrency market as a whole has significantly decreased. To emphasize this point, spot volumes dropped to $1.56 trillion, a 43.4% drop from their previous high in November of $2.08 trillion.
On the other hand, the volume of futures trading fell by 23.8% to $2.91 trillion during the same time period. In addition, the cryptocurrency exchange Coinbase, which is listed on the Nasdaq, has provided hints regarding the trend of institutional stockpiling of crypto assets.
According to the earnings reports for Coinbase's third quarter, nearly 25 percent of the world's 100 largest hedge funds are entering the cryptocurrency market via Coinbase's platform. In addition, the company made note of the fact that some hedge funds are starting to "test the waters" of the cryptocurrency market.
Consequently, once the crypto winter is over, they might enter the mainstream in their entirety. According to the same quarterly report, Coinbase incurred a loss of $2.43 per share, which is higher than the loss of $2.40 per share that industry analysts anticipated. Meanwhile, the revenue of the company is $590 million, which is lower than the $654 million that analysts anticipated.
