The cryptocurrency market has majorly been the playing ground for retail investors, but the trend has been shifting in recent months.
EndoTech, an algorithmic trading platform, published its cryptocurrency findings for the fourth quarter of 2022. The study highlighted some of the key factors in the cryptocurrency market, and here are our top picks.
- 1 Top 10 takeaways from the EndoTech study
- 1.1 Retail crypto penetration is now flat
- 1.2 The gender gap in the crypto space continues
- 1.3 Profit remains the primary motivation in the industry
- 1.4 Confidence is growing among investors
- 1.5 Trust remains an issue in the industry
- 1.6 More investment will take place if there is regulation
- 1.7 Traditional financial regulators should handle the crypto market
- 1.8 Investors are not too sure about recommending cryptos to their friends
- 1.9 Cryptocurrency is a hedge against inflation
- 1.10 Crypto investors recorded losses last year
Top 10 takeaways from the EndoTech study
Retail crypto penetration is now flat
The study has revealed that new retail investors are not so thrilled about entering the cryptocurrency market. The research pointed out that the well-publicised crypto failures like Voyager, Celsius and 3 Arrows has caused a decline in the interest of new retail participant. The study showed that only 17% of Americans own cryptocurrency at the moment.
The gender gap in the crypto space continues
The cryptocurrency market has been accused of being dominated by men, and the study shows that the trend hasn’t changed. According to the research, 19% of American men own cryptocurrency, while only 13% of women do.
Profit remains the primary motivation in the industry
While many people say they are in cryptocurrency for the tech, EndoTech research has revealed that most investors are there for profit. 47% are invested in crypto because of the profit potential, while 43% are invested in crypto because of the fundamental promise of decentralised finance. Another 8% view their crypto investments as more of an ‘anti-movement of the traditional finance system.
Confidence is growing among investors
Despite the bear market, many cryptocurrency investors remain confident about the general market. 71% of respondents are more confident in the future of cryptocurrency today than they were a year ago.
Trust remains an issue in the industry
The survey showed that 60% of respondents feel there is a lack of trust in cryptocurrencies. Investors are eager for governments to regulate cryptocurrencies, something that is counter to some of the purists’ views of what DeFi should be.
More investment will take place if there is regulation
The survey showed that 77% of investors would be more inclined to invest if there was more regulation. The study showed that investors desire to have more guidelines and transparency in investing.
Traditional financial regulators should handle the crypto market
While some crypto proponents want new regulators to handle cryptocurrencies, a large percentage of investors want the regulators to come from the traditional financial system. 51% of the respondents want crypto regulators to come from the traditional financial industry.
Investors are not too sure about recommending cryptos to their friends
Cryptocurrencies have made many people rich and have changed how the world looks at the financial ecosystem. However, not everyone feels that way. 53% of respondents said they would not recommend cryptocurrency to their friends, while 47% said they would.
Cryptocurrency is a hedge against inflation
The global economy is experiencing rapid inflation levels, and many investors consider cryptocurrencies to be a hedge against inflation. 75% of the respondents say they consider cryptocurrencies to be a hedge against inflation.
Crypto investors recorded losses last year
The crypto market raced to a new all-time high last year, but not everyone benefited from Bitcoin and the other rallies. 29% of crypto investors have lost more than 50% of their money. And, a further 45% claim to be around flat relative to their investments.