Since August, the prices of Bitcoin (BTC) and Ethereum (ETH) have experienced significant declines, with BTC dropping around 10% and ETH plummeting approximately 25%. These price movements have pushed both cryptocurrencies to their lowest levels in the past six months. Consequently, crypto investors’ sentiment has shown signs of wavering, leaning towards a more pessimistic view of the market.
Despite these challenges, a recent report indicates that the majority of investors remain optimistic about the future of the largest cryptocurrencies. This optimism persists even as the market faces turbulence, with the pace of digital asset sales slowing over the past six months.
Investors Remain Bullish on Bitcoin and Ethereum
On Tuesday, global exchange Gemini released its 2024 Global State of Crypto Report, shedding light on investor attitudes towards Bitcoin and Ethereum. The report gathered insights from 6,000 surveyed adults across the United States, United Kingdom, France, Singapore, and Turkey.
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The data reveals a prevailing positive sentiment among current and past crypto owners. Notably, 57% of surveyed investors expressed comfort in including digital assets in their investment portfolios. Additionally, 27% of past owners, representing more than one in four respondents, indicated a likelihood of re-entering the market.
Confidence in the future of BTC and ETH remains strong, with 62.5% of investors expecting prices to rise over the next five years. Furthermore, 55% of owners believe there are now more reasons to be optimistic about the market’s future compared to the period before the crypto winter of 2022.
Adoption sentiment is also on the rise, with 60.2% of surveyed investors anticipating that many companies will accept BTC, ETH, and stablecoins as payment methods within the next decade.
Crypto Ownership Trends Remain Steady
Over the past two years, crypto ownership levels have remained consistent in the US, UK, and France. However, the percentage of past owners has seen an increase, suggesting that ownership numbers were higher before the market downturn. In the US and UK, ownership levels have remained stable, but the number of investors exiting the market has surged.
According to the report, the US had a 5% past owners’ rate two years ago, which has now increased to 14%. Similarly, the UK’s past owners’ rate has grown from 8% to 14%. Both countries have also seen a reduction in non-ownership percentages, with the US dropping from 75% to 65% and the UK from 74% to 68%. However, regulatory concerns remain a significant barrier for non-owners, with 38% of respondents in both the US and UK citing this as a deterrent.
Singapore has experienced a decline in its ownership rate, falling from 30% in 2022 to 26% this year. The report notes that 75% of past investors exited the market more than six months ago. Despite this, selling activity has slowed significantly, indicating that current investors are holding onto their assets through market fluctuations.
Interestingly, past crypto owners are likely to return to the market. Over 70% of surveyed past owners expressed an intention to buy cryptocurrencies in the next year, despite having exited during the downturn. This indicates a sustained bullish sentiment towards digital assets and a readiness to re-invest when market conditions improve.
Bitcoin is currently trading at $57,120, reflecting ongoing market dynamics and investor sentiment.
