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54% of crypto investors say they haven’t sold their coins during the market carnage

Justinas
Baltrusaitis
2 months ago
3 mins read

The cryptocurrency market meltdown of 2022 likely altered the investment strategies of a number of holders, with some resolving to dump their assets. However, a significant share of investors remain unfazed by the correction as they anticipate a future market rally.

Indeed, more than half of crypto investors, at 54%, indicated that they had not sold any portion of their digital asset holdings in recent weeks despite escalating sell-offs, research published by Civic Science on July 26 indicates. 

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

Investors who sold crypto holding chart. Source: Civic Science

Majority of investors not affected by market crash 

Interestingly, despite leading assets like Bitcoin (BTC) losing value by almost half in 2022, 78% of respondents noted that the market carnage has not negatively impacted them. The feedback was shared by 4,466 respondents between July 20 and July 21 with the group comprising mainly retail investors who make up a significant crypto market share. 

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

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

The research findings come after the market was characterized by significant incidents, including the Terra (LUNA) ecosystem crash. The correction also altered the business operations of most entities that were forced to tweak operations, like filing for bankruptcy in the case of crypto lending platforms Celsius and Voyager Digital.

At the same time, Bitcoin recorded its worst quarterly returns at -56% during Q2 2022

Possibility of market rally 

Overall, the study’s findings partly point to a belief by a section of cryptocurrency analysts that the recent meltdown is part of the general crypto trajectory. For instance, commodity strategist at Bloomberg Intelligence Mike McGlone believes that the crypto market led by Bitcoin will rally in the second half of 2022. 

Notably, the market has shown signs of rallying and turning green in July sustaining the gains into July. After losing the critical level, the market reclaimed the $1 trillion capitalization. 

The bet on markets to rally 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 crypto hedge fund launch of $1 billion in assets under management. Elsewhere, BlackRock (NYSE: BLK) partnered with crypto exchange Coinbase to facilitate institutional cryptocurrency investments. 

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

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Justinas Baltrusaitis
Author

Justin crafts insightful data-driven stories on finance, banking, and digital assets. His reports were cited by many influential outlets globally like Forbes, Financial Times, CNBC, Bloomberg, Business Insider, Nasdaq.com, Investing.com, Reuters, among others.

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