Research: Bitcoin Investors Unaffected by Fake News as Crypto Market Matures

Cryptocurrency and Bitcoin trading-infamously known for their volatility-seem to have become relatively "Stable overall" as investors have held on to their digital investments, according to research published by Chainalysis on Sept. 24.Maturing Crypto Market.

The research concluded that observed monetary aggregates displayed "Extremely steady" behavior during the summer months of May to August, with BTC prices stable for 22 percent of the observed period.

The researchers attribute the market behavior to a maturing cryptocurrency investor, which is less susceptible to hype unlike 2017 and sensationalist news fails to influence price action as before.

The study believes market participants and bitcoin investors before 2017 had "Different beliefs and expectations" compared to the newer investors, which seems to have "Recalibrated" the cryptocurrency market.

As observed, both speculators and long-term investors have maintained their outlook and BTC positions over the recorded summer period, with only fundamentally detrimental news like technology lapses or strict regulatory decisions causing a widespread market plunge.

Both long-term investors and speculators maintained their positions over the summer, reportedly meaning that only a fundamental change like restrictive regulation or technology improvements could cause a market reaction.

As noted, over 5.1 million BTC was handled by day traders and short-term investors since December 2017, coming close to the number of bitcoins held by long-term investors - over 6 million BTC - for more than a year.

The Chainalysis research was supported by Bank for International Settlements report published on Sept. 23.

The report, published by BIS economist Ralph Auer, found out a strong correlation between crypto prices and regulatory interventions in the digital asset market.

The report concluded that investors respond most animatedly to news specific to legal-policies, such as a crypto-ban or acceptance, and the possibilities of bitcoin-trading products akin to traditional security offerings.