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Most crypto investors wouldn’t sell even if prices crashed 80% and nearly half have made trading a new career or are considering it
A Deutsche Bank report found that most crypto investors are steadfast holders.
The potential for high returns and portfolio diversification were common reasons for investing in crypto.
Most crypto transactions are under $100, and only a small percentage believe “crypto is a golden ticket.”
A report from Deutsche Bank published this week says that the majority of crypto investors surveyed would be steadfast holders even if prices plunged dramatically.
The findings point to a broad bullishness for cryptocurrencies. Less than half of crypto investors surveyed would reduce or sell their crypto positions even if prices dropped by 80%. Meanwhile, nearly 50% of those surveyed say they have either become so successful in crypto trading that they’ve already left their job or are considering leaving their job.
Among the 3,250 US consumers surveyed as part of the “The Future of Cryptocurrencies” report from the bank, 680 respondents used cryptocurrencies. Of those, 65% said they had used cryptocurrencies for the first time during the last year.
Over half of crypto investors say they buy in because they think they can make money, with curiosity and portfolio diversification among other common motivations.
A quarter of those surveyed think bitcoin will be trading above $110,000 in five years, and nearly three-quarters plan to increase their crypto activity moving forward.
Despite the bullishness, Deutsche Bank noted that the majority of crypto transactions are under $100, and that only a small percentage of investors believe that “crypto is a golden ticket.” About 43% treat crypto trading more as a hobby, saying it has no impact on their job or future career plans.
The cryptocurrency market ballooned in 2021. In November, bitcoin reached an all-time high of $69,000 and ether closed at above $4,800, with the total market cap of all cryptocurrency topping $3 trillion.
Bitcoin, ether, and other major coins have been hit with losses to start the year as investors adjust their risk appetite ahead of interest rate increases and policy tightening by the Federal Reserve.
