More people show interest in crypto in 2022, research suggests
Bank Of America executed Research early June after the LUNA crash to determine the market sentiment towards Crypto. Surprisingly, the result showed that people still intend to buy HODL and even use Crypto for online transactions.
This result is surprising as the crypto community is still reeling from the market crash. But even with the continued downward trend, many people still believe that crypto will recover. The respondents in this survey were a maximum of 1,000. 90% of these figures told the researchers that they plan to invest in Crypto before the end of 2022.
Related literature | Over 253,000 Traders Liquidated as Crypto Bloodbath Continues
The researchers also found that the number of people already using crypto and those planning to invest is the same. With that, the BoA analysts concluded that crypto sentiment is still positive, even with the ongoing woes in the market.
Cryptocurrency Market on the Road to Recovery | Source: Crypto Total Market Capitalization on TradingView.com
But this attitude is different from what cryptocritics think. For someone like Berkshire Hathaway CEO Warren Buffet, Bitcoin has no weight because it produces nothing. Buffet made his point clear when he stated that he would not buy all the available BTC for $25, even if someone offered them to him.
This statement supported his belief that Bitcoin is not impressive whether the price is skyrocketing or falling. Buffet sees BTC as an asset that investors passively hope the price will rise. For him, that’s not something to cheer about.
30% plan for HODL, 39% already use crypto
From the survey, the BoA analysts found that 30% of the people who responded were crypto holders. This group said they have no plans to sell their crypto this year. Instead, they plan to HODL and wait for a better price in the future.
Surprisingly, some investors are still hopeful that crypto will rise again from the ashes. While some analysts say there is no end to the ongoing bearish trend, investors are still waiting.
Sentiment is good, according to BoA analysts. It shows that not all hope is lost for crypto. But he also stated that investors should be wary as the recent FUD may still trigger another downtrend in the sector.
As for the other 39%, this group revealed that they are already buying things online with digital assets. For them, digital assets are a way to pay for online purchases, not a store of value, as enthusiasts say.
Canadian Bank Survey supports holders
The research shows that cryptocurrency owners in Canada do not use it as a means of payment. Instead, they use it as an investment vehicle. In 2021, 13% of Canadians owned bitcoin compared to the 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 twofold growth in the use of bitcoins.
Related literature | By the numbers: Bitcoin suffers biggest one-day drop since March 2020
As for Bank of America’s stake in digital assets, the CEO says it can’t hit the market yet due to regulations prohibiting them.
Featured image from Forbes, chart from TradingView.com