A new study was conducted that aimed to find out whether investors and traders trust in cryptocurrencies in general has weakened.
The study was commissioned by Bitstamp and showed encouraging results. U.S. investors’ confidence in cryptocurrency has not wavered, despite falling markets and a cryptocurrency winter that is not yet about to recede. 28,000 institutional and retail investors from 23 countries were surveyed. Among global retail investors, about 61% responded that their trust in cryptocurrency has not changed and they expect positive changes in the cryptocurrency market.Last quarter, their number was 65%. The percentage who trust digital assets is slightly higher among institutional investors, 67%, up from 70% in the first quarter, according to the Bitstamp Crypto Pulse report.
Analysts say these “numbers are inspiring and a testament to the resilience of this asset area.”
The numbers vary by country, according to the report, in the U.S. the increase in trust is highest: from 61% to 73% in the first and second quarters, respectively. Trust in digital assets is also high in Brazil, Mexico and Chile, averaging about 72%.
But in Canada, trust in crypto fell below 50% in the second quarter.
Bitstamp analysts note that in these difficult times, trust in cryptocurrencies has generally held up in most of the countries surveyed. Of course, it will fluctuate depending on upcoming events, but as long as there is a cryptocurrency winter in the market, you can use this time to improve knowledge about digital assets and increase your investments.
The fact that most traders, exactly 62%, hold bitcoin for about a year or more, 32% hold bitcoin for a month to a year, and only 6% hold it for less than a month is also a testament to the continued confidence. Despite the prolonged bear market, most crypto investors use the simplest trading strategy: holding or HODL, an asset holding strategy, including on crypto deposit platforms. At the same time, 48% of holders are in profit and 48% are at a loss, while 4% are neither in profit nor loss.
24% of holders have not sold their assets for at least 5 years, and apparently will not sell as long as this bearish trend persists.
More than half of investors, about 55%, retained their holdings during the general sell-off, according to a survey conducted by research platform Appinio. Most of them still see cryptocurrencies as a great investment opportunity in the coming months.
The reasons for the continued bear market are related to the fact that major lenders, Celcius in particular, have stopped withdrawing funds with liquidity problems. An important factor influencing the fall in the value of digital assets is the loss of the peg to the U.S. dollar of the TerraUSD Classic (USTC) stablecoin, which happened in May.
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