According to the Crypto Pulse study for Q2 released by the cryptocurrency exchange Bitstamp, the widespread destruction in cryptocurrency prices as the market entered a crypto winter has not diminished American enthusiasm in the industry.
Based on a survey of 28,000 institutional and retail investors in 23 countries that was performed by a reputable research organization, “it’s apparent that many investors are using this winter to establish a solid foundation for crypto’s next bull run.”
Investors Still Bullish on Crypto
The only country in the Americas where retail respondents “saw trust in cryptocurrency slide significantly below 50% in Q2 vs. Q1” was Canada. Overall, retail respondents in the Americas “continued to exhibit increasing trust in cryptocurrencies in Q2.” According to the research, “all other Americas countries saw trust in cryptocurrencies stay strong, at or above 68%, with countries like Brazil at 77%, Chile at 69%, and Mexico at 70%.”
In the U.S., 61% of retail respondents claimed to have made a crypto investment during Q2 2022, up from 42% in Q1—a figure that indicates a 44% rise in active investors. The “single highest rise in trust, from 61% in Q1 to 73% in Q2” was also seen in this group. Education is the main source of worry for respondents from the United States and Canada, with 44% of retail respondents saying they lack the knowledge necessary to begin investing in cryptocurrencies.
On an institutional level, 69% of respondents from the United States said they advise cryptocurrency to their clients. With 78% of respondents saying affirmatively, Mexico had even higher results than Brazil and Argentina, where the percentages were 72% and 71%, respectively.
On the other side of the Atlantic, the percentage of retail investors surveyed in the U.K. and Europe who thought cryptocurrency was a reliable investment decreased from 54% in April to 52% in the most recent survey, the research said, adding that “this differed between nations.”
Globally speaking, from 67% in Q1 to 65% in Q2, the proportion of retail investors who consider cryptocurrency to be a reliable investment decreased significantly. Similar trends were observed among institutional investors, who now view cryptocurrency with 67% less confidence than they did in Q1 (60%).
These figures are encouraging and demonstrate the industry’s resiliency, the report said, noting that in Q1 we were entering a crypto winter. Retail investors as a whole raised their crypto purchases in Q2, and those who said they traded or invested in cryptocurrency every day or every week went from 56% to 60%. One in four institutions said they intended to use cryptocurrency as their main source of investment.
Overall, despite a significant market slump, the cryptocurrency sector has fared quite well. The report’s conclusion read, “Investors are taking this time to either raise their investment or deepen their understanding of crypto, even though trust in crypto has marginally dropped in some regions”.
