Trend cycles never stand still, rather they constantly evolve and are refined over time. Regarding the crypto market, several stories like “Buy the Dip” and “HODL” have turned into cyclical trends and so far have gained mass.

One report The Bank for International Settlements (BIS) recently identified several trends in emerging markets and their participants. The first and most interesting trend is the change in HODLing patterns. For a market to grow, it is probably necessary to keep existing investors.

The data from IntoTheBlock creates an additional story. Overall, HODLer has outnumbered and dominated other participants in the last few months. The report also claims that as HODLing becomes more popular, the crypto market could stabilize over time. In addition, the BIS report states:

“Those who have invested in cryptocurrencies in the past will likely continue to invest.”

Next, the report argues that owning cryptocurrency has nothing to do with being “suspicious” of fiat currencies. They further emphasized that cryptocurrencies like Bitcoin do not pose a threat to traditional financial instruments. The report states:

“Crypto currency is not operated as an alternative to fiat currencies or regulated finances, but as a digital niche speculation object.”

It should be noted, however, that crypto advocates firmly believe that this new twist on digital currency will eventually replace fiat currencies entirely. For example, Dan Held from Kraken recently calculated that Bitcoin will become the world’s reserve currency in a period of 10 years.

The report also argues that the regulations will “benefit” the entire crypto industry. In fact, most of the big-name regulators have already started working in this direction. For example, Congressman Bill Foster recently advocated the importance of crypto regulatory mechanisms. He argued that third parties like the courts should be allowed to enter the ecosystem through a “cryptographic back door” in order to protect the industry from ransomware attacks. BIS notes:

“The industry could benefit from a clear regulatory and supervisory framework for the crypto market.”

Finally, the report also points to the interdependence between educational attainment and crypto investment decisions. The overall trend has shown that crypto owners are “generally above average”. Another suggested analysis:

“Of the various cryptocurrencies, XRP and Ether holders are the best educated, while Litecoin holders are the least educated, with Bitcoin holders in the middle.”

Annie

According to Ambcrypto

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