Crypto Faith Strong Across Americas Despite Global Drop: Survey

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  • Glob­al faith in the dig­i­tal asset sec­tor dipped by 3% in this year’s sec­ond quar­ter, accord­ing to a Bit­stamp survey
  • The Amer­i­c­as gen­er­al­ly bucked the wider trend, with all coun­tries except Cana­da show­ing stur­dy faith in crypto

Glob­al trust in cryp­to among retail and insti­tu­tion­al investors took a small hit in the sec­ond quar­ter of this year, accord­ing to a recent sur­vey, a peri­od marked by liq­uid­i­ty crises and high-pro­file collapses.

Still, faith in the asset class remains rel­a­tive­ly high, shows research under­tak­en on behalf of cryp­to exchange Bitstamp.

In a recent sur­vey involv­ing 28,000 respon­dents across 23 coun­tries, trust in the cryp­to sec­tor was shown to have dipped 3% among insti­tu­tion­al types, from 70% in Q1 to 67% in the fol­low­ing period.

The per­cent­age of retail investors glob­al­ly who found cryp­to trust­wor­thy also dropped — from 67% to 65%. Respon­dents based in the US how­ev­er revealed a bump in trust, from 61% to 73%.

An insti­tu­tion­al investor was defined as an indi­vid­ual with con­trol or major influ­ence on the invest­ment strat­e­gy of a client or com­pa­ny, Bit­stamp told Block­works. Retail investors, mean­while, are those clas­si­fied as being over 18 who’ve both heard of cryp­to and hold any type of investment.

The num­ber of retail investors active­ly invest­ing in the space still surged from 42% to 61% quar­ter-over-quar­ter, a rise of near­ly one-fifth.

Indeed, while trust was shak­en on a glob­al scale, retail respon­dents across most of the Amer­i­c­as dis­played more faith in cryp­tocur­ren­cies last quarter.

“In fact, Cana­da was the only coun­try that saw trust in cryp­tocur­ren­cy dip slight­ly below 50% in Q2 vs. Q1 among retail respon­dents,” the report states. 

“All oth­er coun­tries in the Amer­i­c­as saw trust in cryp­tocur­ren­cy remain high, at or above 68% with coun­tries such as Brazil at 77%, Chile at 69%, and Mex­i­co at 70%.”

Bitstamp’s crypto survey reflects wider market caution

Ongo­ing macro­eco­nom­ic fac­tors, such as ris­ing infla­tion and tight­en­ing cen­tral bank pol­i­cy designed to curb it, have ham­mered risk-on assets like bit­coin and ether.

Bit­coin and ether are down almost 60% in the year to date after prices plum­met­ed in the sec­ond quarter.

That would appear to be eat­ing away at cryp­to invest­ment prod­ucts, which have seen vol­umes dip across the board, hit­ting their low­est lev­els in two years as out­flows in August continued.

Cryp­to exchange trade vol­umes across major exchanges includ­ing Coin­base shows insti­tu­tion­al play­ers vast­ly out­weigh retail when com­pared to crypto’s pre­vi­ous bull run in 2017, accord­ing to Mes­sari ana­lyst Tom Dunleavy.

“Although mar­kets may seem bleak in this bear­ish envi­ron­ment, we’re still see­ing strong inter­est from sophis­ti­cat­ed investors across Asia and the Amer­i­c­as look­ing to deploy cap­i­tal in the space,” Daniel Kim, direc­tor of invest­ments at FBG Cap­i­tal told Block­works in an interview.

“We see some of our port­fo­lio com­pa­nies look­ing to make it eas­i­er for non-cryp­to native indi­vid­u­als to access and enter cryp­to,” Kim said. Bitstamp’s sur­vey found the largest bar­ri­ers to entry for both investor types last quar­ter stemmed from a lack of aware­ness, knowl­edge and suf­fi­cient indus­try regulation.

Much of the mar­ket is still con­cerned by infla­tion fol­low­ing his­toric mon­ey print­ing dur­ing the pan­dem­ic, ren­der­ing it dif­fi­cult for investors to gauge the health of both equi­ties and cryp­to markets.

“Infla­tion is so high for a vari­ety of rea­sons – ener­gy and oil prices have surged as a result of the Russ­ian war and there have also been sup­ply chain con­cerns,” Dan Ash­more, Char­tered Finan­cial Ana­lyst at Invezz wrote in an email.

The increased sup­ply of new mon­ey has been nec­es­sary to get the econ­o­my back on its feet, but the sheer amount of dol­lars has caused infla­tion to spiral.

“The only thing we know for a fact is that, his­tor­i­cal­ly, such large draw­downs often make for a good time to buy,” Ash­more wrote.


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  • Sebas­t­ian Sinclair

    Block­works

    Senior Reporter, Asia News Desk

    Sebas­t­ian Sin­clair is a senior news reporter for Block­works oper­at­ing in South East Asia. He has expe­ri­ence cov­er­ing the cryp­to mar­ket as well as cer­tain devel­op­ments affect­ing the indus­try includ­ing reg­u­la­tion, busi­ness and M&As. He cur­rent­ly holds no cryptocurrencies. 

    Con­tact Sebas­t­ian via email at [email pro­tect­ed]



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