A glimmer of hope in the darkness of this crypto winter is that the data indicates crypto investors are still backing digital assets.
According to a recent survey conducted by Bank of America Global Research, 91% of the people surveyed stated that the drop in crypto prices did not deter them from investing in digital assets overall and that they intend to buy cryptocurrencies in the next six months. 39% of respondents said they had used crypto as a payment method for online purchases.
Conducted in early June 2022, the company interviewed 1,013 participants and these are the results:
Active Crypto Investors
More than half of the participants said that they owned cryptocurrencies with most reporting that they have small balances (the most prevalent transaction size was under $25).
Reasons Behind Crypto Investments
The reasons listed by participants as to why they invest in crypto were portfolio diversification, price appreciation, being a part of a community and interest in technology.
Interestingly, 53% said that they accumulated cryptocurrencies through PayPal.
75% of the participants said that they owned Bitcoin, 44% owned Ethereum, and 26% had bought the meme coins Dogecoin and Shiba-Inu.
From Bears To Bulls
This timely survey comes in the wake of heavy price drops across the cryptocurrency market sparked by an announcement from the U.S. Federal Reserve concerning increased interest rates. As a result, many investors pulled their money out of the crypto (and stock) markets, causing prices to drop to lows last witnessed in 2020.
However, many seasoned investors jumped at the opportunity to buy crypto assets at such low prices. Buying the dip, as it is called, is when investors take advantage of price drops and accumulate more. As more people do this, the market gradually gains more traction and prices tend to rise. This is how cryptocurrencies then move from a bear market to a bull market.