Affluent investors are far less likely to sell their cryptocurrency holdings
According to a new report by consumer intelligence research platform CivicScience, around 54% of investors haven’t sold their cryptocurrencies in the past few months.
However, roughly a fourth of cryptocurrency investors sold almost all of their holdings. Twenty percent of respondents only sold a small amount of crypto.
Unsurprisingly, there is a direct correlation between its income and its ability to maintain a reserve of cryptocurrency. Investors who make more than $150,000 a year tend to have a high level of conviction, with around 70% having sold nothing in the past few months. Conversely, the majority of those with annual incomes below $50,000 sold all or at least part of their holdings.
Overall, roughly 20% of the general population has already invested in cryptocurrencies.
The percentage of those who say cryptocurrency volatility affects their desire to invest in digital assets, such as Bitcoin, Dogecoin and Ethereum, rose from 54% in January to 58% in July. This suggests that the recent crash has made cryptocurrencies much less attractive to risk-averse investors.
Only a fifth of investors believe that crypto has not peaked in popularity, which once again confirms that it is currently in a bear market.
According to 30% of respondents, the number one reason investors are reluctant to gain exposure to crypto is its perceived lack of legitimacy.
Respondents are also reluctant to dip their toes into crypto because they do not understand it. Some are also concerned about its extreme volatility.
