Bybit, third largest crypto exchange in terms of volume, has shared insights on trading trends in crypto based upon the platform's own data. The report "Navigating Bull and Bear Markets - A Dive into User's Allocation" gives a general overview of the strategies used by institutional, VIP and retail investors between December 2022 and September 2023.

The main finding is that institutional investors (INS) have increased their Bitcoin holdings by over two-fold. This group's transition to BTC accelerated in 2023's third quarter. INS allocated about half their portfolio to Bitcoin and Ether at the end of September. The graphs below show that this pattern is quite different from the other two cohorts included in the report.

Retail and VIP traders are moving their money away from leading cryptos and into stablecoins. INS, on the other hand has been deploying stablecoins for BTC in Q3 of 2023. Bybit's report states that retail crypto traders tend to decrease their stablecoin investment during bull markets, and increase them during bear markets or calm periods. This suggests a risk-aversion. INS holders also show good timing when they switch stablecoins into leading cryptos during a downmarket.

Retail investors, who make up all three cohorts, have shown a cautious attitude towards altcoins. However, in July they experienced a sudden shift in mood, and increased the share of altcoins in their wallets to over 40%. Investors from institutions consistently have little faith in the performance of altcoins, with a clear downward trend - except for a small spike in July.