A report from Bybit's cryptocurrency exchange, Bybit Research, has shown that institutional investors prefer to put their money into "safe" assets rather than altcoins.
According to Bybit's research, institutional traders are more bullish on Bitcoin (BTC) than Ethereum (ETH) or other altcoins.
"Of particular interest is the fact that half of the INS portfolio was allocated to BTC in September," Bybit Research said in a report.
The data shows that institutional traders have significantly increased their Bitcoin holdings in the first three quarters of this year, which analysts believe is due to positive market sentiment and the pending approval of spot Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC).
Meanwhile, as of September, half of institutional investors' assets were denominated in Bitcoin, but at the same time they began allocating funds to Ethereum, indicating increased confidence in the cryptocurrency market as a whole as the latest update, Shanghai (Shapella), failed to meet expectations.
It is worth noting that retail traders have the lowest BTC retention rate compared to institutional investors, which is due to higher leverage, according to Bybit.
In addition, there is a significant decrease in altcoin retention by investors. This shows a cautious attitude towards more volatile assets.
The Bybit research report is based on data from the cryptocurrency exchange's active user base from December 2022 to September 2023.
Meanwhile, a growing number of influencers and leading experts on the cryptocurrency market are predicting Bitcoin's continued growth.
Blockstream CEO Adam Beck predicted that Bitcoin will rise to $100,000 before the next half year, sparking an increase in positive sentiment in the cryptocurrency community.
"My bet is $100,000 before the halving," he said.
Since the beginning of the year, the price of BTC has increased by about 140 percent, while the price of ETH has increased by 87 percent.
Read also: Crypto.com has received an EMI license from the FCA.
