- Almost 60% of crypto investors are planning to boost their investments
- Most investors are growing confident due to increased institutional adoption.
Cryptocurrency is among the most volatile assets globally, yet investors are still willing to invest more. Recent data from BanklessTimes.com shows that 60% of crypto investors plan to increase their allocation to crypto assets in the Future.
Jonathan Merry, the CEO of BanklessTimes, commented:
There is a growing trend towards the mainstream adoption of cryptocurrency. The diversification benefits and profits attract investors and make them more comfortable with digital assets. As it stands, more investors are likely to onboard the investment trends.BanklessTimes CEO, Jonathan Merry
Investor Sentiment
60% of investors globally intend to improve their asset allocations, showing huge belief and commitment to cryptocurrency. On the other hand, 38% of current investors feel comfortable with the amount they are currently holding and are not eager to increase it.
Of the investors intending to maintain or boost their crypto asset allocations, 62% hoped for greater future returns, highlighting the robustness of cryptocurrency trends while 37% aimed to diversify their portfolios. Among those planning to improve their crypto asset allocation, 20% are eager and ready to invest in the next quarter.
Besides, 37% of investors believe crypto is better than traditional assets and can act as a critical hedge within the traditional market. This belief is strengthened by Bitcoin's performance in the last ten years, particularly during COVID-19. The trend is further impressive, with 53% of investors who have never gone crypto planning to make allocations for cryptocurrency.
Why are Investors Confident?
Most crypto investors are showing confidence and optimism due to recent trends. Among those trends is a growing institutional adoption by big financial entities. Besides, large corporations are adding digital assets to their portfolios. Additionally, blockchain technology and applications are running across several industries, giving investors the hope of crypto's transformative nature.
Bitcoin ETF approval in the United States and other jurisdictions has built hope among investors. They see the approvals of crypto ETFs as an opening to a larger market for crypto investors. Also, many investors are growing confident in cryptocurrencies' ability to hedge against traditional financial market risks or during global economic breakdowns.
Despite investors' bullish sentiments on crypto, it is crucial to understand the risks associated with crypto investments. The volatility of the crypto markets always leads to substantial price fluctuations, exposing investors to severe losses. Also, the regulatory lines remain faded as no single government worldwide has a solution to crypto regulations.
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