A real drama takes place in the crypto market. Bitcoin & Co. have lost two-thirds or more of their value in the last few months. Of the nearly half of the survey participants for whom cryptocurrencies are a problem at all, a clear majority still remain on the ball.
The crypto-doubters now have their confirmation. “Those who smelled the bubble and said ‘it’s all a snowball system’ seem to be right – is that the end of investor Eldorado?” asks Werner Grundlehner in a recently published article in the NZZ crisis par excellence.
The forces that were driving cyber coins to extreme heights at the time could now also be responsible for their crashes: Institutional investors who have been more and more active in the crypto sector since 2021 and as large investors promote the link between stocks and cryptocurrencies and are like now has positions in Bitcoin and Co. sold off on a large scale that market observers suspect.
Massive decline in market value
As a result of increasing acceptance, Bitcoin climbed to a record high of around $ 69,000 in November 2021, and the market value of the entire crypto sector grew by 185% to around $ 3 trillion last year, according to Coindesk. USD. In the meantime, however, the wind has turned: According to “CoinMarketCap”, the market value of all cryptocurrencies is currently only around 0.93 trillion. USD, the Bitcoin price is in the range of USD 20,000 (as of June 29, 2022).
Retail investors are no longer the dominant crypto traders. The largest share of the daily crypto trading volume comes from crypto institutions, to a large extent from their trading with each other. For example, stock exchanges, custodian banks and cryptocurrencies, the “Financial Times” quotes investment bank Morgan Stanley to say. In fact, private investors accounted for only a third of all trades on the Coinbase cryptocurrency exchange last year. Private investors, on the other hand, would have dominated about four years ago, when Bitcoin was still trading below $ 10,000. This picture has apparently not changed in the first quarter of this year either.
Five personality types
The crypto exchange Bitmex has conducted a survey of crypto users in Europe. The results of an online survey show what five personality types exist in Europe when it comes to dealing with cryptocurrencies:
Crypto passive (18% of respondents): They are the most reserved. Every second person in this group is over 50 years old. They have a higher income compared to others, while their ownership of and interest in cryptocurrencies is relatively low.
Crypto savvy (20%): These are knowledgeable, well-educated investors with high holdings and a positive attitude towards cryptocurrencies.
Crypto-beginners (17%): They are the youngest group – just over half of them are between 21 and 30 years old – and mostly single. While they have a moderate exposure to cryptocurrencies, their interest in learning more about cryptocurrencies is relatively low.
Crypto Curious (24%): This group would probably like to learn more about cryptocurrencies as they see the appeal of short-term gains. They are middle-aged people (between 31 and 49 years old) for whom there is money to show the results of hard work and provide for their families.
cryptocurrencies (21%): You are the fifth crypto personality. Nearly three-quarters of this group are men. Although they are also middle-aged, they differ from crypto-beginners in that they have the most positive attitude towards cryptocurrencies and also know the most about it. Almost all cryptocurrencies (98%) own cryptocurrencies.
Possession of cryptocurrencies more common in Switzerland than in Europe
According to its own statements, the crypto exchange Bitmex is also the first to present insights into the Swiss attitude and behavior towards cryptocurrencies. In this country, possession of cryptocurrencies is more common than in the rest of Europe: Two out of three respondents (67%) own cryptocurrencies. In the other European countries it is a little over half with 55%. In addition, every second person surveyed in Europe assumes that cryptocurrencies will be an important payment method for the next five years. If 61% of Swiss respondents get their way, cryptocurrencies will even become an alternative to traditional currencies.
Almost 17% of Swiss currently have assets in cryptocurrencies (Europe: 17.5%). This share is likely to increase slightly: Looking ahead, 22% of respondents say they would invest in cryptocurrencies (Europe: 24%). Now, of course, the question arises as to whether and, above all, to what extent the turbulence in the crypto markets will affect the behavioral intentions of those involved.
If you look at the results of the investrends.ch survey “What is your attitude towards investing in cryptocurrencies now?”, 17.3% indicate that they will remain invested even after this crash and 6.4% will leave their crypto investments. While investing in cryptocurrencies is not a problem at all for 53.6%, 10.9% of survey participants are reluctant to invest and 11.8% are now investing.
In the next survey, you can give your opinion on SNB’s key interest rates. Here is the vote.