In its latest Crypto Pulse report, Bitstamp said that attitudes towards cryptocurrencies remain broadly positive, although retailing has become more cautious as the cryptocurrency sector seeks a bottom in its current bearish trend.
The Crypto Pulse survey was commissioned by Bitstamp and took place between May 19 and June 6, 2022. It gathered responses from 28,000 retail and institutional investors and took into account their views on knowledge, trust, plans and attitudes towards cryptocurrencies.
The survey was divided into 3 regions, which include the UK and Europe, the Americas, Asia-Pacific. A general overview was also reported.
UK and Europe
Of the 10,000 retail investors contacted in the UK, Germany, Italy, France, Spain and the Netherlands, more than half reported investing in cryptocurrencies, up 7 points from the first quarter.
Education was the biggest obstacle to cryptocurrency adoption, as 21% of respondents said they wanted to invest in cryptocurrency markets but didn’t know enough about the industry.
Confidence in cryptocurrencies as an investment has dropped by 2% and the desire for more regulation has increased from 23% to 26%.
Nearly a third of the 2,000 institutions surveyed said they planned to increase their cryptocurrency investments in the second quarter, with the biggest increase coming from the UK, where 35% wanted to increase their investments compared to 28% in the first quarter.
Confidence in cryptocurrencies across the Americas remains strong, with most countries holding over 68%. The United States showed the largest increase in confidence, with 61% in the first quarter rising to 73% in the second quarter.
Again, education was a problem, as in the US and Canada combined, 44% said they didn’t know enough to start investing in cryptocurrencies.
On the other hand, those who considered themselves “very well informed” were eight times more likely to find reliable cryptocurrencies.
In this region, the cryptocurrency winter is being used as an opportunity to build cryptocurrency positions for the future, as over a third of institutions said they were increasing their investments.
In Australia, institutional investment was strong, as 38% said they would increase their investments, up from 27% in the first quarter. In comparison, institutional investment in Hong Kong has been more cautious as a wait-and-see strategy is more prevalent in the country.
As we are in the midst of a bear market, the confidence shown towards cryptocurrencies has been greatly reduced. A decline from 67% in Q1 to 65% in Q2 is pretty minimal considering the downward trend.
Indeed, the cryptocurrency market is showing strong resilience, despite a general lack of education. Bitstamp CEO JB Graftieaux said:
“This Crypto Winter will provide an opportunity for both retail and institutional investors to build for the future”,
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.