Portfolio Shifts in Crypto: Stablecoins Surge in Sell-offs
When crypto markets face sell-offs,stablecoins like Tether (USDT) and USD Coin (USDC) often surge to nearly 30% of portfolios. Though, Bitcoin (BTC) and Ethereum (ETH) remain steady at around 50% across market cycles.This trend highlights how investors react to market volatility.
During bullish periods, investors tend to take more risks. This insight comes from a recent analysis by Finestel, a platform that helps asset managers automate trading on major exchanges. The data reveals that top managers favor “core” cryptocurrencies, especially BTC and ETH, during price rallies. In January, as BTC approached $73,000 and ETH surged post-Pectra upgrade, these two coins held 57% of portfolio holdings. Layer-1 tokens like Solana (SOL) and Avalanche (AVAX) saw a 21% allocation. Stablecoins dropped to 14%, signaling a “risk-on” attitude.As prices climb, managers increase exposure to BTC and ETH.In January, these two assets made up 57% of holdings. Layer-1 tokens like SOL and AVAX rose to 21%. Stablecoins fell to 14%, showing a clear “risk-on” stance.
by May, BTC and ETH still held 54% of portfolios. Layer-1 tokens were at 24%, while DeFi tokens were at 8%. Stablecoins stayed at 14%.This suggests a preference for core assets during upswings.
But in February,as prices dipped,BTC and ETH allocations fell to 47%. Stablecoins jumped to nearly 30%, providing liquidity and protection. DeFi tokens dropped from 8% to 5%,and layer-1 tokens slid to 20.5%. This shift shows a strategic move towards safer assets during downturns.
Finestel’s data, shared with crypto.news, shows a balanced approach. In March,april,and June,allocations were more balanced. BTC and ETH were at 50%, with layer-1s at 20.5%.This balance reflects cautious optimism. In March, BTC and ETH were at 50%, with stablecoins at 24.5%. Layer-1 tokens were at 20.5%, and DeFi tokens were at 6%. This indicates a cautious approach. By June, after a mild correction, BTC and ETH were back at 50%, with stablecoins at 24.5%. Layer-1 tokens were at 20.5%, and DeFi tokens were at 6%. This mix shows a balanced strategy. Managers keep a steady hand on core assets, using stablecoins for liquidity. Bybit’s report echoes this. It shows BTC’s share rising to
