2 months ago
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Bitcoin (BTC) and Ethereum (ETH) prices have dropped around 10% and 25% since August, reaching their lowest levels in the past six months. As a result, crypto investors’ sentiment appeared to be faltering, moving toward a negative outlook on the market.
Nonetheless, a recent report revealed that most owners remain bullish about the largest cryptocurrencies despite the recent market shakeouts. Similarly, investors’ ownership remains steady, with the selling of digital assets slowing down in the past six months.
Investors Are Bullish On BTC and ETH
On Tuesday, global exchange Gemini shared its 2024 Global State of Crypto Report, revealing that investors are still bullish about Bitcoin and Ethereum. The report is based on the responses of 6,000 surveyed adults across the US, UK, France, Singapore, and Turkey.
According to the data, sentiment about crypto is positive among owners and past owners, with 57% of the surveyed investors stating they are comfortable making digital assets part of their investment portfolio.
27% of past owners, more than one in four, responded positively to the same question, signaling the possibility of re-entering the market. Meanwhile, 62.5% of investors are confident that the price of BTC and ETH will continue to rise over the next five years.
Similarly, 55% of owners consider there are more reasons to be bullish about the market’s future than before 2022’s crypto winter.
Most surveyed investors also responded positively about crypto adoption, with 60.2% believing many companies will accept BTC, ETH, and stablecoins as payment methods within the next decade.
Crypto Ownership Maintains Its 2022 Levels
In the last two years, crypto ownership numbers have remained consistent in the US, UK, and France. However, the percentage of past owners has increased throughout the year, suggesting higher ownership numbers before the market’s downturn.
Compared to 2022’s data, ownership levels remain the same in the US and UK, while the number of investors exiting the market surged. Per the report, the US had a 5% past owners’ rate, while the UK had an 8% rate two years ago. In 2024, these figures have increased to 14%.
Both countries also reduced their non-ownership percentage from 75% and 74% to 65% and 68% respectively. However, the survey found that the lack of regulatory clarity is a drawback to non-owners. 38% of the surveyed in the US and UK cited regulatory concerns as a barrier to entering the market.
Singapore saw a decrease in its ownership rate, falling from 30% in 2022 to 26% this year. The report revealed that 75% of past investors exited the market more than six months ago. Meanwhile, selling activity has significantly slowed in recent months despite the surge in past crypto owners.
Similarly, the percentage of current owners who sold their crypto during this period is considerably lower than the investors who sold over a year ago, indicating that investors are holding their assets throughout the rally and the market shakeouts.
According to the report, past crypto owners are likely to return. Over 70% of the surveyed past owners claimed they are “likely to buy cryptocurrencies in the next year” despite leaving the market during the downturn. The former investors “are bullish about digital assets, signaling they will be ready to buy again.”
Featured Image from Unsplash.com, Chart from TradingView.com
