Bitcoin Investment – Understanding Crypto Market

The market has experienced two extremely exciting months as the price of Bitcoin has continuously peaked and set a new record in 2020. When will its price go up or down? Today, I accidentally read a research report from Binance Research and found some interesting information, I will edit and share with everyone about my personal views in the following article.

Bitcoin Investment - Understanding Crypto Market
Bitcoin Investment – Understanding Crypto Market

When you enter this market, the vast majority don’t want or like to look at these survey data, but I still put them up to help you understand my purpose. At the end of May 2019, Binance Research held its first poll distributed on major institutional and VIP customers using multiple Binance services such as exchanges and OTC. This report discusses some of the findings and findings stemming from the collected responses.

Type Of VIP Guests And Organization

Among large institutional clients, more than half said they usually held positions for more than a week, while only one-third said they would engage in high-frequency trading and market creation strategies. other.

Regarding the use of exchanges, we see a large difference in the number of exchanges used between clients. And found a clear positive relationship between client-owned capital and the actual amount of exchange used, suggesting that customers with larger amounts of money tend to use more exchange platforms. with customers with less capital.

In addition, 90% of them use USD as the main platform for calculating profit, according to the picture above, we draw the conclusion that: Most of the organizations and VIPs they play LONG, about 22% are SHORT only.

Stablecoin usage (%) on institutional and VIP customers

When it comes to stablecoins, nearly all respondents use stablecoins for various functions such as trading and as a store of value. Not surprisingly, USDT is the currency used but PAX and USDC also seem to be widely used. Among USDT alternatives, USDC appears (not surprisingly) particularly popular for non-Chinese customers while Chinese customers prefer PAX. However, some customers said they are currently looking for alternatives to USD Tether (USDT) with similar liquidity records (link to our report, where we say USDT has a bar). best terms).

Interestingly, DAI, a stablecoin backed by cryptocurrency, is minted within the Maker ecosystem, which is used by nearly 20% of the participants.

Finally, 87% of respondents have used OTC (e.g. Binance OTC, Galaxy Digital, Cumberland, Huobi OTC) before. The main reason cited when using selected OTC services is that these tables act as a fiat encryption gateway, followed by better liquidity and less transaction hassle. The last two reasons are especially meaningful for large organizations!

Experience In Electronics Market

In this section, past experiences from institutional and VIP clients will be discussed.

Most of the respondents had previous experience in the financial industry with only 7% of respondents having no experience in the financial industry before joining the cryptocurrency and digital asset industry, in 71% have at least 3 years of experience in traditional finance.

Regarding their experience in the cryptocurrency industry, most of the major players have been involved for several years in the industry, with only 7% in the space for less than a year.

Interestingly, the two widest categories are 2-3 years (30%) and 5-7 years (18%). They represent the initial participation periods of 2013-2014 and 2016-2017, respectively, the two largest price increases: 2014 (closed before MtGox) and the peak of December 2017.

What this concludes for us, only about 7% of new chickens enter the market. The rest are the vast majority of people with years of experience, experts … And I’ll show you this indicator in the next chart.

When asked about their trading of other types of assets, institutional clients and VIPs, more than half of the respondents traded other types of assets. Among them, 50% also conduct transactions on the capital market and 25% participate in foreign currency transactions.

67.5% of respondents are involved in leveraged trading, through margin loans or futures contracts.

Crypto Storing Method

In terms of storage methods, customers with Big Assets under their management (more than $ 25 million) store (at least partially) their digital assets in cold wallets and / or through the use of translation. specialized third-party depository services, in addition to using the exchange to trade. For large customers (i.e. funds dedicated to investing and trading cryptocurrencies over $ 5 million), cold wallets are almost always chosen as one of their answers.

So what is the conclusion?

Most organizations and VIPs use cold wallets for storage
And the vast majority of them store their coins on an exchange
The rest is saved on hot wallets

While decentralized exchanges (IDAX, DEX, Binance DEX) are always strongly supported by decentralization, very few people use them, for the following reasons:

Difficult to use, not friendly compared to centralized floors.
The trading volume is quite low so investors are not interested

Views Of Crypto Market
Risks and growth momentum for the cryptocurrency industry

Participants were asked to choose a score between 1 and 5 for each risk on the list. In the following tables, 1 represents the highest level while 5 represents the lowest level.

Bitcoin Investment - Understanding Crypto Market
Bitcoin Investment – Understanding Crypto Market

When asked to evaluate potential risks & negative factors for the cryptocurrency industry, the biggest concern is undoubtedly the technology risk such as hacking. Surprisingly, Tether (USDT) is not one of the biggest risks chosen, despite the recent uncertainties with ongoing legal disputes related to Tether’s support.

Despite the growing popularity of private currencies like Monero (XMR), most of the respondents still haven’t considered the potential risks associated with the inherent privacy concerns of blockchain. But looking at the table above, we conclude that the things that can affect prices are: Hacked Floors, Hacked Big Sites, … are always the leading factors that catalyze prices, followed by legal issues. reason, and politics, so we launch the table below to re-evaluate the factors affecting this industry.

Bitcoin Investment - Understanding Crypto Market
Bitcoin Investment – Understanding Crypto Market

From the top down, the most influential things, and can confirm that JPMorgan’s FBCoin, SamsungPay or StableCoin will not affect the price much.

In general, changes to global and local regulations, which seem to be the main factor, are largely overseen by sampled market participants.

The ETF proposal in the United States is still a topic of great interest and many players expect it to also be a major growth driver for the digital finance and cryptocurrency industry. Overall, any development of ancillary financial products (ETFs, options, regulated futures and brokerage services) can become significant growth drivers for the industry.

The future of Bitcoin and other major cryptocurrencies

This final section discusses market participants’ expectations about which cryptocurrencies they have rallied the most by the end of 2019 along with Bitcoin’s expected market dominance.

At the time of the survey, Bitcoin market dominance was only about 60% accurate, so most participants expected this to be almost the same or down slightly.

More than 80% of participants expect Bitcoin market cap to range from 40% to 60% by the end of December 2019. It illustrates Bitcoin’s special state as the industry’s connection. Digital finance and electronic money.

Participants were asked to choose the most underrated segment in the digital asset industry among the four main categories.

Blockchain infrastructure (e.g., Ethereum, Zil Liquidia, Icon, Neb Formula) was chosen as the most underrated segment for 42% of the respondents.
Value / Currency / Payment / Payment Stores (e.g. Bitcoin, Monero, Ripple) are second and 36% of them choose.
Services and DApps are built on the blockchain (e.g., Exchange Token, Social Media, Gambling and Games, Data Storage, etc.) are selected only by 15% of the participants. .
Others get 6% feedback with specific feedback like Privacy, etc. Some participants even said that all digital assets were overvalued.

So what do we conclude from this conclusion, Bitcoin will still be the leader, If Bitcoin Dominance ranges from 40-60%, it is still possible for altcoin to fly. The rest you do not need to care much Ahihi


This market is always risky, this is the evaluation and research panel of Binance Research with institutional and VIP customers. This study shows that we are only small shrimp that influence other catalysts but cannot control prices. Basic price up or down are organized by investors.

Most of the survey selected USD as a liquidity, so we will know how widely USDT is used, so don’t worry much. From the survey for the points that can catalyze, impact on the price increase and decrease, from then on, the fish like us can easily cling to, eat and celebrate, if not eat then be unlucky … So, in fact, this article with people with specialized knowledge is difficult to understand, so those who do not understand, you can read and read it carefully.

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