Confidence in cryptos remains high despite the onset of a crypto winter
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(Kitco News) – The widespread devastation in crypto prices as the market descended into crypto winter has not dampened the interest of Americans in the crypto sector, according to the Q2 Crypto Pulse survey released by cryptocurrency exchange Bitstamp.
The survey, conducted by an independent research firm that surveyed 28,000 institutional and retail investors in 23 countries, stated that “it is undeniable that many investors are using this winter to build a solid foundation for crypto’s next bull run.”
Overall, retail respondents in the Americas “continued to show more confidence in cryptocurrencies in Q2,” with the only exception being Canada, which “saw confidence in cryptocurrency fall slightly below 50% in Q2 vs. Q1 among retail respondents.”
“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%,” the report said.
In the US, 61% of retail respondents indicated they invested in crypto during Q2 2022, representing a 44% increase in active investors compared to Q1, where 42% of US respondents bought crypto. This group also saw “the biggest increase in trust, from 61% in Q1 to 73% in Q2.”
The biggest area of concern for respondents from the US and Canada is education, with 44% of retail respondents indicating they don’t know enough to start investing in crypto.
At the institutional level, 69% of respondents from the US indicated that they recommend crypto to their clients. The results for this question were even higher in Mexico, with 78% of respondents answering affirmatively, while in Brazil and Argentina the percentages were 72% and 71% respectively.
Heading across the Atlantic, the share of retail investors combined in the UK and Europe who rated crypto as a reliable investment fell from 54% in April to 52% in the current survey, according to the report, which also noted that “this varied between countries.”
Looking at the results on a global scale, the percentage of retail investors who see crypto as a reliable investment has fallen slightly from 67% in Q1 to 65% in Q2. Institutional investors saw a similar decline, with 67% still considering crypto credible compared to 70% in Q1.
“Considering that in Q1 we entered a crypto winter, these numbers are inspiring and speak in favor of the industry’s resilience,” the report said.
Retail investors as a whole increased their crypto purchases in Q2, with those who identified themselves as investing in or trading crypto on a daily or weekly basis climbing from 56% in Q1 to 60% in Q2. One in four institutions indicated that they plan to make crypto a primary form of investment.
Overall, the crypto industry has held up remarkably well in the face of a major market correction. “Although confidence in crypto has fallen slightly in some regions, investors are using this time to either increase their investments or expand their knowledge of crypto,” the report concluded.
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