Large number of Bitcoin retail investors incur losses, BIS study reveals
BIS (Bank of International Settlements) is a Switzerland-based bank belonging to 63 national central financial institutions that recently revealed a new survey based on Bitcoin.
Primarily, BIS offers various banking services to several national central banks. It also creates a platform for regulatory policy and monetary discussions. The organization also delivers analyzes based on the nation’s economy.
The members central financial institutions in BIS elected around 18 board members to manage the business. The central member financial institutions consist of the governors of the central banks of France, Belgium, the United States, Germany, the United Kingdom and Italy. These are the permanent board members.
They can also collectively appoint another director from one of the member central banks. Finally, the governors from the other member major financial institutions will elect the 11 board members remaining from the entire board.
The BIS study
Considering the ongoing movement in the crypto market, it is no surprise that many investors are experiencing losses. Therefore, BIS decided to look into the situation of crypto investors regarding the current state of the crypto market.
The findings revealed that roughly a third of BTC retail investors are currently at a loss. The study was based on the activities of private investors on different stock exchange applications.
According to the survey, most downloads of exchange applications occurred when BTC was still above $20K. The study covered data from 2015 to 2022, spanning around 95 nations.
The survey showed that retail investors bought an average of $100 worth of BTC monthly. From this data, approximately 81% of retail investors are currently at a loss.
This event raises concerns about venturing into crypto investing. The BIS believes that the crypto ecosystem is one of the riskiest investments for anyone. Also, the implementation may not help the economy as it is now.
Bitcoin continues to attract retail investors
Contrary to the belief of the BIS, investors are still showing more interest in Bitcoin regardless of the current situation. However, the BIS noted that digital currencies are quite volatile. Therefore, if prospective investors venture into it, they may also incur losses.
Moreover, these digital assets are still not recognized as global means of payment. This fact also indicates that cryptocurrencies have no government support.
The Bank of International Settlements also cited that despite Bitcoin’s fall, investors are still conducting trade transactions with this token.
About 75% of the BTC price is lost within a year, and that’s not all. Considering the crash of FTX and 3AC, BIS noted that investor confidence in crypto investments should be somewhat shaky. At the time of writing, Bitcoin is trading at $16,586.
Featured image from Pixabay, chart from TradingView.com