54% of crypto investors say they haven’t sold their coins during the market crash
The cryptocurrency market meltdown of 2022 likely changed the investment strategies of a number of holders and some decided to dump their holdings. However, a significant proportion of investors remain unaffected by the correction as they expect a future market rally.
More than half of crypto investors, at 54%, indicated that they had not sold any part of their holdings of digital assets in recent weeks despite escalating selling, survey published by Civic Science on July 26 indicates.
Elsewhere, the remaining 46% indicated they had cashed out “a lot” or “all” of their crypto investments to 26%, while 20% sold only a small amount of their digital assets. The finding is based on feedback from 1,233 people shared between 25 July and 26 July.
The majority of investors are not affected by market crashes
Interestingly, despite leading assets such as Bitcoin (BTC) losing value by almost half in 2022, 78% of respondents noted that the market carnage has not negatively affected them. The feedback was shared by 4,466 respondents between July 20 and July 21 with the group consisting mainly of retail investors who make up a significant market share of the crypto market.
It is worth noting that the crypto market has built a reputation for having fast returns despite the volatility. Therefore, this aspect has emerged as a critical motivation for retail investors to engage.
The research findings come after the market was hit by significant events, including the Terra (LUNA) ecosystem crash. The fix also changed the business operations of most entities that were forced to fine-tune their operations, such as filing for bankruptcy in the case of crypto-lending platforms Celsius and Voyager Digital.
At the same time, Bitcoin recorded its worst quarterly return of -56% during Q2 2022.
Possibility of market rally
Overall, the study’s findings point in part to a belief on the part of cryptocurrency analysts that the recent meltdown is part of the overall crypto trajectory. For example, Bloomberg Intelligence commodity strategist Mike McGlone believes the crypto market led by Bitcoin will rally in the second half of 2022.
In particular, the market has shown signs of recovery and turning green in July and maintaining the recovery into July. After losing the critical level, the market regained the capitalization of 1 trillion dollars.
The bet on markets to rally is also highlighted by increased interest from institutions that have resumed pumping money into the space.
In particular, asset manager Brevan Howard announced largest crypto hedge fund launch at $1 billion in funds under management. Elsewhere, BlackRock (NYSE: BLK ) partnered with crypto exchange Coinbase to facilitate institutional cryptocurrency investment.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
