Low-Income Investors Sold Most Crypto Holdings During Market Crash (Survey)

Almost half of the cryptocurrency investors surveyed (46%) admitted to selling some of their holdings in the past few weeks. Those with lower wages were more likely to part with their holdings.

Most HODLers tend to be wealthy

US-based business intelligence company – Civic Science – polled thousands of cryptocurrency investors to find out how the ongoing market crash affected their actions. 26% said they cashed out a lot of their positions, while 20% sold a small amount.

Unsurprisingly, most financially stable individuals (especially those earning over $150,000 per year) remained HODLers as only 28% of them parted with any crypto assets. However, 65% of those from the lower income group sold part of their staff.

The desire to invest in digital assets has also changed due to the price collapse. In January, 54% of investors said that market volatility is a significant obstacle that could stop them from deploying wealth in it, while currently 58% share that view.

The main reason why people stay away from the digital asset area is not the price fluctuations. 30% believe bitcoin is not legitimate, while 23% pointed out its volatility. 10% admitted that they do not have the financial opportunity to enter the ecosystem, and 5% do not understand how to buy crypto assets.

Crypto is popular among the rich

Several other studies have proven the assumption that digital assets are an attractive investment option mainly for wealthy individuals. A survey conducted by CNBC in late 2021 estimated that 83% of millennial millionaires own cryptocurrencies. 48% said they plan to increase their exposure in 2022, and only 6% think they should reduce their holdings.

The rich millennials have also invested a significant amount of their wealth in bitcoin or altcoins. 53% stated that half of their portfolio is in crypto, and 30% admitted that 75% of their total wealth is allocated there.

Another recent research conducted by Forbes revealed that billionaires are also inclined towards the asset class. According to the results, every third person surveyed with a total wealth of at least $1 billion has some form of exposure to cryptocurrencies.

Some notable names on the list include Sam Bankman-Fried – CEO and co-founder of FTX – who said that between 76% and 100% of his portfolio is deployed in digital assets.

The owner of The Dallas Mavericks – Mark Cuban – is also part of that club. He even said that during the market collapse, his crypto holdings had outperformed his tech stocks:

“It’s no different than investing in stocks, bonds, other assets. Interest rates go up, risk assets go down. My tech stocks have underperformed my crypto.”