Bank Of America conducted research in early June after the LUNA crash to determine market sentiment towards Crypto. Surprisingly, the result showed that people are still planning to buy HODLs and even use Crypto for online transactions.
This result is surprising because the crypto community is still reeling from the market crash. But even with the ongoing downtrend, many people still believe that cryptocurrencies will recover. Respondents in this survey numbered up to 1,000. 90% of these numbers told the researchers that they plan to invest in Crypto before the end of 2022.
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The researchers also found that the number of those already using crypto and those planning to invest is the same. Because of that, analysts at BoA concluded that crypto sentiment remains positive even with the ongoing troubles in the market.
But this stance is different from what mainstream crypto critics think. For someone like Berkshire Hathaway CEO Warren Buffet, Bitcoin carries no weight because it doesn’t produce anything. Buffet made his position clear when he stated that he would not buy all the available BTC for $25, even if someone offered it to him.
This statement supported his belief that Bitcoin is unimpressive whether the price spikes or crashes. Buffet sees BTC as an asset that investors hold passively waiting for the price to rise. For him, that is not something to applaud.
30% plan to HODL, 39% already use crypto
From the survey, BoA analysts found that 30% of the people who responded were cryptocurrency holders. This group said that they do not plan to sell their crypto this year. Instead, they intend to HODL and hope for a better price in the future.
Surprisingly, some investors are still hopeful that cryptocurrencies will rise from the ashes. Although some analysts say there is no end to the ongoing downtrend, investors are still waiting.
Sentiment, according to BoA analysts, is good. It shows that all hope is not lost for cryptocurrencies. But he also stated that investors should be careful as the recent FUD in the industry could still cause another downtrend.
As for the other 39%, this group revealed that they are already buying things online with digital assets. For them, digital assets are a means of paying for online purchases, not a store of value, as enthusiasts say.
Canadian Bank Survey supports holders
The survey shows that cryptocurrency owners in Canada do not use them as a form of payment. Instead, they are using it as an investment asset. In 2021, 13% of Canadians owned bitcoin compared to 5% who owned bitcoin in 2020.
According to the bank, BTC holders had an average cryptocurrency value of $500. The Bank of Canada revealed a two-fold growth in bitcoin usage.
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Regarding Bank of America’s interest in digital assets, the CEO says that they cannot yet enter the market due to regulations that prohibit them from doing so.
Featured image from Forbes, chart from TradingView.com