54% of crypto investors say they have not sold their coins during the market carnage.

The cryptocurrency market crash of 2022 likely altered the investment strategies of several holders, with some deciding to dump their assets. However, a significant portion of investors are undeterred by the correction as they anticipate a future market rally.

In fact, more than half of crypto investors, 54%, indicated that they had not sold any part of their digital asset holdings in recent weeks despite escalating sell-offs, according to a study published by civic science July 26 indicates.

Elsewhere, the remaining 46% indicated that they had cashed out “a lot” or “all” of their cryptocurrency investments at 26%, while the remaining 20% ​​only sold a small amount of their digital assets. The finding is based on comments from 1,233 people shared between July 25 and 26.

Holding graph of investors who sold cryptocurrencies. Source: Civic Science

Most investors are not affected by the market crash

Interestingly, despite major assets like Bitcoin (BTC) losing value by nearly half in 2022, 78% of respondents said they have not been negatively affected by the market carnage. The comments were shared by 4,466 respondents between July 20 and 21 with a group made up primarily of retail investors who account for a significant share of the crypto market.

Crypto investors affected by the market crash. Source: Civic Science

It is worth noting that the crypto market has earned a reputation for quick returns despite volatility. Therefore, this aspect has become a critical motivation for retail investors to get involved.

The research findings come after the market was marked by significant incidents, including the collapse of the Terra (LUNA) ecosystem. The fix also disrupted the business operations of most entities that were forced to modify operations, such as filing for bankruptcy in the case of crypto lending platforms Celsius and Voyager Digital.

At the same time, Bitcoin posted its worst ever quarterly performance at -56% during Q2 2022.

Possibility of market rally

Overall, the study’s findings point in part to a section of cryptocurrency analysts’ belief that the recent crash is part of the overall crypto trajectory. For example, Bloomberg Intelligence commodity strategist Mike McGlone believes that the Bitcoin-led crypto market will recover in the second half of 2022.

In particular, the market has shown signs of recovery and turned green in July, maintaining July gains. After missing the critical level, the market rallied back to the $1 trillion cap.

The bet on markets to recover is also highlighted by increased interest from institutions that have resumed pumping money into the space.

In particular, asset manager Brevan Howard announced the largest $1 billion crypto hedge fund launch in assets under management. Separately, BlackRock (NYSE:BLK) has partnered with cryptocurrency exchange Coinbase to facilitate institutional investments in cryptocurrencies.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. By investing, your capital is at risk.

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