Market Analysis Report (04 Nov 2022)

While during the last cryptocurrency bear market holders across different wallet sizes were panic-selling their assets, during this bear market, we are seeing a consistent accumulation in almost all accounts.

As detailed in CryptoCompare’s 2022 Outlook Report, Bitcoin accounts with over 10,000 BTC holdings have seen an increase which is likely a result of growing institutional adoption.

The accumulation trend is being seen even at a time in which bitcoin and cryptocurrencies have so far failed to act as an inflation hedge, bringing into question a long-proposed narrative by digital asset natives.

So far this year, both BTC and ETH have performed inversely to inflation and nominal interest rates. Bitcoin’s volatility has been steadily stabilizing in a bounded range compared to the last bear market. During the last bear market, in 2018, BTC’s average annualized volatility was 79%, while it’s now at 63%.

Read on about crypto market trading volumes, the ongoing accumulation trend, and more reading CryptoCompare’s 2022 Outlook Report: In The Midst Of Winter Q4.