Arcane Analysis’s 2022 year-end report cited that 2022 was the second-worst-performing yr for Bitcoin (BTC), because the main crypto noticed a 65% lower all year long, solely crushed by the 73% sink recorded in 2018.
BTC’s efficiency was the second-worst of the yr in comparison with Binance Coin (BNB), Ethereum (ETH), S&P 500, and Gold. ETH recorded essentially the most vital lower by falling 69%. Gold was essentially the most resilient, recording solely a 1% fall.
Crypto trade Binance’s development was one other spotlight of 2022. Binance’s dominance in BTC spot quantity grew by 47% all year long, rising to 92% on the present market share from the 45% recorded on the primary day of the yr.
Binance was answerable for 66% of the crypto perp quantity and 61% of the BTC derivatives quantity because the yr concludes. The trade recorded a ten% improve in each areas, in comparison with 49% and 56% at the start of the yr.
The report predicted Binance’s dominance within the spot market will decline, and the BUSD dominance will improve.
BTC and equities correlation
BTC’s correlation with different equities has additionally been considerably excessive in 2022. The report appeared into BTC’s annual correlation with Nasdaq, S&P 500, Gold, DXY, and ETH since 2017.
The info confirmed that BTC’s correlation with ETH has been sturdy since 2017. Nevertheless, 2022 was the primary yr BTC demonstrated such a robust correlation with different equities.
BTC’s correlation with Nasdaq was strong all year long at 0.59, carefully adopted by S&P 500 at 0.56. Nevertheless, the report expects BTC’s correlation with different belongings to say no within the following years because the buying and selling exercise in crypto declines.
Stablecoins’ market cap relative to BTC additionally grew exponentially in 2022, rising to 41% from 15% at the start of the yr.
The report claimed that the rising stablecoin dominance has a self-evident clarification. It acknowledged:
“Cryptocurrency valuations have deteriorated this yr, and stablecoins are secure.”
The mixed market cap of stablecoins represented 28% of BTC’s and ETH’s mixed market cap and 17% of the entire crypto market cap. This share was 10% and 6% at the start of the yr.