Bitcoin (BTC) and Ethereum (ETH) prices have fallen by around 10% and 25% since August, hitting their lowest levels in the past six months. As a result, crypto investor sentiment seemed to falter, moving towards a negative outlook on the market.
Nevertheless, a recent report revealed that most owners remain optimistic about the largest cryptocurrencies, despite recent market fluctuations. Likewise, investor ownership remains stable, with digital asset sales slowing over the past six months.
Investors are optimistic about BTC and ETH
On Tuesday, the global Gemini stock exchange shared its 2024 Global State of Crypto Report, which shows investors are still bullish on Bitcoin and Ethereum. The report is based on responses from 6,000 adults surveyed in the US, UK, France, Singapore and Turkey.
According to the data, sentiment toward crypto is positive among owners and former owners, with 57% of investors surveyed saying they are comfortable with making digital assets part of their investment portfolio.
Investor's confidence about digital assets. Source: Gemini
27% of previous owners, more than one in four, answered positively to the same question, indicating the possibility of re-entering the market. Meanwhile, 62.5% of investors are confident that the price of BTC and ETH will continue to rise over the next five years.
55% of owners believe there are more reasons to be optimistic about the future of the market than before the crypto winter of 2022.
Most investors surveyed responded positively to cryptocurrency adoption, with 60.2% expecting many businesses to accept BTC, ETH and stablecoins as payment within the next decade.
Crypto holdings maintain their 2022 levels
Over the past two years, crypto ownership figures in the US, UK and France have remained consistent. However, the percentage of former owners has increased throughout the year, suggesting higher ownership figures before the market downturn.
Compared to 2022 data, ownership levels in the US and UK remain the same, while the number of investors exiting the market has increased. According to the report, the US had a 5% rate for former owners, while the UK had a rate of 8% two years ago. In 2024, these figures have increased to 14%.
Both countries also reduced their non-ownership rate from 75% and 74% to 65% and 68% respectively. However, the research found that the lack of regulatory clarity is a disadvantage for non-owners, with 38% of respondents in the US and UK citing regulatory concerns as a barrier to market entry.
Digital Asset ownership remains steady in most surveyed countries. Source: Gemini
Singapore saw a decline in its ownership rate, from 30% in 2022 to 26% this year. The report revealed that 75% of previous investors left the market more than six months ago. Meanwhile, selling activity has slowed significantly in recent months, despite the increase in previous crypto owners.
Similarly, the percentage of current owners who sold their crypto during this period is significantly lower than investors who sold more than a year ago, indicating that investors are holding on to their assets throughout the rally and market fluctuations.
According to the report, former crypto holders are likely to return. More than 70% of former holders surveyed claimed that they are “likely to buy crypto in the coming year,” despite having exited the market during the recession. The former investors “are bullish on digital assets, indicating that they are ready to buy again.”
Bitcoin is trading at $57,120 in the three-day chart. Source: BTCUSDT on TradingView
Main image from Unsplash.com, chart from TradingView.com