Low Income Investors Sold Most Crypto Holdings During Market Crash (Survey)

Nearly half (46%) of crypto investors surveyed admitted to selling some of their assets in the past several weeks. Those with lower wages were more likely to part with their holdings.

Most HODLers are wealthy

Civic Science – a US-based business intelligence company – surveyed thousands of cryptocurrency investors to find out how the ongoing market crash affected their actions. 26% said they redeemed a lot of their positions, while 20% sold a small amount.

Unsurprisingly, most financially stable individuals (especially those earning more than $150,000 per year) remained HODLers as only 28% of them parted ways with some crypto asset. 65% of those in the lower income group, however, sold a portion of their money.

The desire to invest in digital assets has also changed due to the drop in prices. In January, 54% of investors said that market volatility was a significant deterrent that could prevent them from distributing money in it, while currently, 58% share that opinion.

Nevertheless, the main reason why people stay away from the realm of digital assets is not the price volatility. 30% believe that bitcoin is not legit, while 23% stated its volatility. 10% admitted that they do not have the financial ability to enter the ecosystem, and 5% do not understand how to buy crypto assets.

Crypto is popular among the rich

Several other studies have substantiated the notion that digital assets are an attractive investment option primarily for wealthy individuals. A poll conducted by CNBC at the end of 2021 estimated that 83% of millennial millionaires own cryptocurrencies. 48% said they plan to increase their investments in 2022, and only 6% believe they should reduce their stake.

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Wealthy millennials also invest a significant portion of their wealth in bitcoin or altcoins. 53% said that half their portfolio is in crypto, and 30% admitted that 75% of their total fortune is allocated there.

Another recent research conducted by Forbes showed that billionaires also have an inclination towards the asset class. According to the results, every third person voting with a net worth of at least $1 billion has some form of exposure to cryptocurrencies.

Some notable names on that list include Sam Banksman-Fried – CEO and co-founder of FTX – who said that 76% to 100% of his portfolio is distributed in digital assets.

The owner of The Dallas Mavericks – Mark Cuban – is also part of that club. He even went on to say that during the market collapse, his crypto holdings outperformed his tech stocks:

“It’s no different than investing in stocks, bonds, other assets. Interest rates go up, riskier assets go down. My tech stocks have outperformed my crypto.”

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