DUBAI, UAE, April 18,
2024 /PRNewswire/ -- Bybit, one of the world's top
three crypto exchanges by volume, partnered with
Treehouse, the industry-leading research institute that offers
professional insights into digital assets, and co-launched its 2024
Institutional Industry Report. It provides an extensive analysis of
the current state of crypto adoption worldwide,
examining how it compares to traditional finance (TradFi).
During the period from October
2023 to March 2024, the
crypto sector experienced a significant surge in
value, with its market cap increasing from slightly above
$1 trillion to over $2.5 trillion by the end of March. This upward
trajectory reflects growing investor confidence and a substantial
influx of capital into the crypto ecosystem.
Delving deeper into the findings, the report reveals bullish
trends in the derivatives market, along with indications of
increasingly aggressive on-chain activities for BTC and
ETH. It also explores institutions' investment
behaviors through on-chain metrics and highlights growing interest
in AI and BTC ecosystem projects.
Additionally, the report investigates the potential long-term
impacts of ETFs and offers insights into what can be expected from
the upcoming bitcoin halving event, as well as key
themes highlighted for a 2024 bull run which is beginning to show
early signs of upticking.
Institutional Focus Areas: Key Highlights
1. Derivatives market becoming increasingly bullish
Examining the long-term call-put skews over the 30 days in
March 2024 reveals a notably bullish
sentiment despite the relatively sideways movement in the market
during March, with both BTC and ETH generally
exhibiting a large call premium.
This trend suggests that investors maintain a generally bullish
outlook on the long-term price potential of these two
crypto majors toward the end of the year.
2. Bitcoin as the perfect TradFi hedge
Both BTC and ETH's correlations with traditional
indices, equity, or fixed income, remain below 3% in all instances.
Of particular note, BTC specifically demonstrates negative
correlations of returns with major equity indices, indicating its
potential role as a diversification hedge for equity-focused
portfolios.
With a modest 5% allocation into BTC and ETH
(equally weighted), the S&P 500's Sharpe ratio can be increased
from 2.20 to 3.15, representing a 43.6% increase. This effect
becomes more pronounced as investors willingly take on additional
risks and allocate more capital to their crypto
portfolios.
3. Renewed Interest toward challenger
chains
Since the beginning of Q4 2023, native tokens of challenger
chains have experienced significant performance as compared to
ETH. For example, SOL emerged as the top performer
among these challenger tokens, continuing the trend observed in
2021 as the biggest challenger chain by TVL and transaction
volume.
4. Boosting funding: infrastructure, gaming, and AI
projects
Venture Capital (VC) funding in the crypto industry
has seen a significant resurge. In Q4 2023, VC deal counts rose by
21% to reach 174 deals, with disclosed funding reaching
$1.42 billion, a 29% increase. In Q1
2024, there were 243 deals with disclosed funding totaling
$1.94 billion, representing a further
36% increase compared to Q4 2023.
Infrastructure projects remain the primary focus of VC
investments, attracting substantial capital to support the
foundational elements of the blockchain ecosystem. These projects
span various sectors, including hardware wallets and blockchain
data providers, offering crucial solutions to address industry
challenges and drive innovation.
As the traditional market integrates with crypto,
it presents constant challenges for TradFi participants and
newcomers to navigate through the heightened complexities. Staying
informed is crucial to stay ahead in this evolving landscape.
To read the full report, visit:
https://learn.bybit.com/crypto-insights/bybit-institutional-x-treehouse-crypto-landscape-in-q1-2024-analysis-narratives/
#Bybit / #TheCryptoArk
About Bybit
Bybit is one of the world's top three crypto
exchanges by volume with over 25 million users. Established in
2018, Bybit offers a professional platform where
crypto investors and traders can find an ultra-fast
matching engine, 24/7 customer service, and multilingual community
support. Bybit is a proud partner of Formula One's reigning
Constructors' and Drivers' champions: the Oracle Red Bull Racing
team.
For more details about Bybit, please visit Bybit Press.
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SOURCE Bybit