Retail investors unfazed by bearish crypto market
Despite crypto winter, individual investors still show interest in investing in digital currencies
Although panic has created in the market with the advent of the crypto winter, research conducted by eToro shows that a significant proportion of retail investors still want to buy crypto assets. According to a report published by this platform, approximately 69% of respondents indicated that they had a positive attitude towards cryptocurrencies or mixed feelings about them after the prolonged bear market. The remaining 31% said that they remain cautious when it comes to further investments in this industry.
A significant proportion of retail investors are not concerned about the cryptocurrency winter
According to a report published by the popular investment platform eToro, the ongoing slump on the virtual currency market has not discouraged a significant part of individual investors from it. The research shows that a large part of such people is still interested in buying this asset class.
About 69% of the surveyed respondents indicated that they remained positive about the market or had mixed feelings about the prolonged slump. The rest, however, indicated that they are cautious about investing in this industry after several spectacular crashes that took place in 2022. 10,000 retail investors from 13 countries participated in the survey.
According to eToro global markets strategist Ben Laidler, most retail investors look at cryptocurrency assets in the long term. Hence, such a large number of them show indifference to current fluctuations, and even optimism related to declines, because the reduced price of individual coins gives them a chance to make cheaper purchases.
Greater risk tolerance and recession concerns
Among the key conclusions provided by the research is that younger investors were less afraid of the cryptocurrency market than older ones. Another interesting observation is that 22% of respondents considered the possibility of a global recession to be the main threat to their investment portfolios containing digital currencies in 2023.
Recently, there has been a visible price rebound on the virtual currency market. The price of Bitcoin (BTC) rose from around $16.4 thousand to levels exceeding $22.8 thousand today. Other cryptocurrencies behaved similarly, for example Ethereum (ETH), which not so long ago passed from hand to hand at USD 1.2 thousand, to finally reach a price above USD 1.6 thousand per coin.