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54% Of Crypto Investors Held Their Assets During The Market Crash


coinculture.com 11 August 2022 10:30, UTC
Reading time: ~2 m

The 2022 crypto market crash is likely to have swayed investors’ investment strategy, with some deciding to dump their assets. However, many others who anticipate a future market resurgence are unconcerned about the decline.

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Indeed, despite growing sell-offs, more than half of crypto investors (54%) said they had not sold any portion of their digital asset holdings in recent weeks, according to Civic Science data published on July 26.

26% of the remaining said they had cashed out “a lot” or “all” of their crypto investments, while 20% just sold a tiny portion of their digital assets. The findings are based on responses from 1,233 people between July 25 and July 26.

Investors’ selling crypto holding charts. Source: Civic Science

The market crash didn’t affect most investors.

Surprisingly, despite major assets like Bitcoin (BTC) losing nearly half their value by 2022, 78% of respondents said the market turmoil had no detrimental influence on them. Between July 20 and July 21, 4,466 people responded, most of whom were retail investors, constituting a sizable portion of the crypto market.

Crypto investors were impacted. Source: Civic Science

It is worth mentioning that, despite the volatility, the crypto market has established a reputation for providing rapid returns. This is a primary motivator for individual investors to enter the crypto space.

The research findings came following incidents in the industry, including the Terra (LUNA) ecosystem breakdown. The correction also affected most organisations or entities forced to change their operations, such as cryptocurrency loan platforms Celsius and Voyager Digital.

At the same time, Bitcoin saw its worst quarterly returns in history, with a -56% drop in Q2 2022.

The possibility of the market rally

The study’s findings indicate that some cryptocurrency specialists believe the latest crisis is part of the broader crypto trajectory. For example, Bloomberg Intelligence commodity strategist Mike McGlone expects that the crypto sector, powered by Bitcoin, will rebound in Q2, 2022.

Notably, the market has exhibited signals of rebounding and turning green in July, implying that the gains would be sustained. The market recaptured the $1 trillion capitalisation after losing the critical level.

Increased interest from institutions starting to invest in the market underscores the bet on markets to rally.

Asset manager Brevan Howard, in particular, announced the major crypto hedge fund debut, with $1 billion in assets under management. In other news, BlackRock (NYSE: BLK) has collaborated with cryptocurrency exchange Coinbase to enable institutional cryptocurrency investments.

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