Civic Science has conducted an interesting survey for cryptocurrency investors. It turns out that many investors have survived the current market downturn. Here are the details…
Most Bitcoin investors continued HODL
US-based business intelligence firm Civic Science surveyed thousands of cryptocurrency investors to find out how the ongoing market crash is affecting their actions. 26 percent of respondents said they liquidated most of their positions. 20 percent said they sell in small quantities. Also, nearly half of the cryptocurrency investors surveyed admitted to selling some of their holdings in a matter of weeks. The number of these investors makes up 46 percent. According to the data, those with lower salaries were more likely to sell their holdings.
Not surprisingly, most financially stable people remained HODLers. Notably, only 28 percent of those earning over $150,000 a year have parted ways with some crypto assets. 65 percent of those from the lower income group sold some of their stashes. The desire to invest in cryptocurrencies has also changed due to the price crash. In January, 54 percent of investors said market volatility was a barrier to entering the crypto space. Currently, 58 percent of respondents share this view.
Price fluctuations aren’t the main reason people stay away from the crypto space, though. According to the survey, 30 percent of respondents believe that Bitcoin is not legitimate. 23 percent cite volatility as the reason. 10 percent of respondents state that they do not have the financial ability to enter the ecosystem. 5 percent admit they don’t understand how to buy crypto assets.
Are cryptocurrencies attractive mainly to the rich?
Several other studies have proven the assumption that cryptos are an attractive investment option mainly for wealthy individuals. A survey conducted by CNBC at the end of 2021 estimated that 83 percent of millennial millionaires own cryptocurrency. 48 percent of these millionaires announced that they plan to increase their crypto investments in 2022. Only 6 percent believed they should reduce their assets.
Rich millennials have also invested a significant portion of their wealth in Bitcoin or altcoins. 53 percent stated that half of their portfolio is in crypto. 30 percent of respondents admitted that 75 percent of their total wealth is in cryptocurrencies. Another recent study by Forbes revealed that billionaires are also inclined towards the asset class. According to the results, one in three surveyed people with a total net worth of at least $1 billion are exposed to some form of cryptocurrency.
Some notable names on this list include FTX CEO Sam Bankman-Fried. Bankman-Fried says he distributes 76-100 percent of his portfolio to cryptos. Dallas Mavericks owner Mark Cuban is also a part of this club. Even cryptocoin.comAs we also reported, crypto assets outperformed tech stocks during the market crash.
