When market prices drastically fall, investors will typically respond in two ways. The first group will join the stampede and exit. The second (usually smaller) group senses a bargain and buys even more, confident that the market will ultimately rebound.
Crypto investors seem to be falling into that second group, at least according to the third SharesPost Cryptocurrency and Blockchain Consumer and Investor Survey.
The crypto markets, particularly Bitcoin, has struggled through a rough wave of volatility of late. But investors tell us that they think prices will recover this year. And they are willing to back up that opinion with action.
Nearly 70 percent of investors say they are more likely to increase their crypto holdings, compared to just 15 percent who said they are not, the survey said. Furthermore, 25 percent of investors (a plurality) said they expect the asset class to jump 50 percent or more.
So why are investors so incredibily bullish? Two things come to mind: Crypto markets are still very new, which means we’re likely to see a lot of price volatility. And investors think prices may have already bottomed out.
Moreover, investors think regulators will finally offer some positive, market clarity. Nearly 45 percent (a plurality) say they expect favorable regulation this year, compared to 35 percent who expect no change and just under 20 percent who expect unfavorable regulation towards crypto.
Here are some other highlights from the survey:
Bitcoin, Ethereum and XRP remain the most popular crypto holdings Both investors and consumers overwhelmingly picked Bitcoin as the top currency they own, followed by Ethereum, XRP and Stellar. Positive investor sentiment for Bitcoin grew to over 80 percent. XRP remains investors’ preferred choice over Litecoin and Bitcoin Cash.
In a SharesPost Research first, respondents share crypto holdings More than 30 percent of investors said they owned at least $25,000 in Bitcoin while another 20 percent reported a similar amount with Ethereum.
The number of companies implementing Blockchain holds steady despite negative sentiment 39 percent of investors and 46 percent of consumers expect their employers will implement blockchain technologies sometime in the future.
2025 is the target for most investors and consumers Investors and consumers see 2025 as the year we see widespread adoption of cryptocurrencies and Blockchain technology.
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