Arcane Research's year-end report for 2022 points out that 2022 will be the second worst year for Bitcoin (BTC), with the leading cryptocurrency declining by 65% throughout the year, only the second largest decline of 73% in 2018.

Compared with BNB, ETH, S&P 500 and gold, BTC's performance is the second worst in recent years. Under ETH, it dropped 69%, a large drop. Gold is very elastic, falling only 1%.

Binance

The improvement of Binance, the data encryption trading center, is another highlight in 2022. The dominant role of Binance in the BTC spot market has increased by 47% over the year, from 45% recorded on the first day of this year to 92% of the current market share.

By the end of this year, Binance accounted for 66% of cryptocurrency transactions and 61% of BTC derivatives transactions. The trading center has achieved 10% growth in both industries, compared with 49% and 56% at the beginning of this year.

The report predicted that the leading role of Binance in the spot trading market would decrease, and the leading role of BUSD would also increase.

Correlation between BTC and stock

In 2022, the correlation between BTC and other individual stocks is also significantly high. The report examined the current year's relevance of BTC to Nasdaq, S&P 500 index, gold, DXY and ETH since 2017.

Data shows that since 2017, the correlation between BTC and ETH has been strong. However, in 2022, BTC showed such strong correlation with other stocks for the first time.

The correlation between BTC and Nasdaq is strong throughout the year, 0.59, and the S&P 500 index is slightly lower, 0.56. However, the report estimated that the correlation between BTC and other assets would also decrease in two years, along with the decline of cryptocurrency trading activities.

Stablecoins

In 2022, the stock market value of Stablecoins will also show an exponential growth compared with that of BTC, increasing from 15% at the beginning of the year to 41%.

The report declared that the growing dominance of the stable currency is well known. It states that:

"The valuation of cryptocurrency companies has changed badly this year, and the stable currency is relatively stable."

The total market value of stable currency accounts for 28% of the total market value of BTC and ETH, and 17% of the total market value of cryptocurrency. At the beginning of this year, the ratio was 10% and 6% respectively.