Bitcoin (BTC) enthusiasts and investors maintained their positions during the past summer, while crypto markets appear to have gained more stability, according to a new research conducted by Chainalysis.

Details of the Study

The data compiled in the report was obtained using the concept of standardization monetary aggregates. Categorically, the investigators classified digital currencies from the most liquid (currencies used for assumption and businesses) to less liquid (currencies kept as investments), and the least liquid (lost cryptocurrencies, or those yet to be mined), subsequently grouping the currency flow into monetary aggregates.

According to the study, the monetary aggregates were “extremely steady” throughout the summer, indicating that the number of BTC used for speculation was constant from May – August at approximately 22% of the total BTC. The sum of BTC kept as investment also depicted stability in this period at approximately 30%.

Recommendations of Chainalysis

Chainalysis recommends that this is a good indicator that the crypto market has become less vulnerable to hype, having created a lenience of news outbursts, which in line with the study, lost the power of swaying BTC prices up and down.

“Instead, the crypto market appears to have recalibrated after the entry of so many new market participants with different beliefs and expectations than those who held BTC before 2017,” the report of the research further stated.

Both long-term enthusiasts and investors held their positions throughout the summer, allegedly implying that only a significant alteration like deterring regulation or technology advancements could ignite a market response.

Additionally, Chainalysis also observed that BTC has sustained growth in its user base from December 2017, meaning that the initial issue of acceptance, which is taking cryptocurrency into people’s hands, is being overwhelmed.

The Previous Chainalysis Study

In June 2018, the company also carried out another study about the switch of Bitcoin “holders” to adventurers in the six previous months. Since the end of 2017, the number of Bitcoins in the hands of day business persons has significantly risen to 5.1 million BTC, nearly matching the number kept by long-term investors- people who have kept the cryptocurrency for more than one year- which is almost 6 million BTC.