Trust in cryptos remains high despite the onset of a crypto winter

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(Kitco News) – The widespread devastation in crypto prices as the market descended into crypto winter has not dampened the interest of Americans in the crypto sector, according to the Crypto Pulse survey for Q2 released by the cryptocurrency exchange Bitstamp. 

The survey, conducted by an independent research firm that polled 28,000 institutional and retail investors across 23 countries, stated that “it’s undeniable that many investors are using this winter to build a solid ground for crypto’s next bull run.” 

Overall, retail respondents in the Americas “continued to show more trust in cryptocurrencies in Q2,” with the only exception being Canada, which “saw trust in cryptocurrency dip slightly below 50% in Q2 vs. Q1 among retail respondents.”

“All other countries in the Americas saw trust in cryptocurrency remain high, at or above 68% with countries such as Brazil at 77%, Chile at 69%, and Mexico at 70%,” the report detailed. 

In the U.S., 61% of retail respondents indicated that they invested in crypto during Q2 2022, representing an increase of 44% in active investors compared to Q1, where 42% of U.S. respondents purchased crypto. This cohort also saw the “single biggest increase in trust, from 61% in Q1 to 73% in Q2.”

The biggest area of concern for respondents from the U.S. and Canada is education, with 44% of retail respondents indicating that they don’t know enough to start investing in crypto. 

On the institutional level, 69% of those surveyed from the U.S. indicated that they recommend crypto to their clients. The results for this question were even higher in Mexico, with 78% of respondents answering in the affirmative, while in Brazil and Argentina, the percentages were 72% and 71%, respectively. 

Heading across the Atlantic, the proportion of retail investors pooled in the U.K. and Europe who rated crypto as a trustworthy investment fell from 54% in April to 52% in the current survey, according to the report, which also noted that “this varied between countries.” 

Looking at the results on a global scale, the percentage of retail investors who see crypto as a trustworthy investment dipped slightly from 67% in Q1 to 65% in Q2. Institutional investors saw a similar decline, with 67% still considering crypto trustworthy as compared to 70% in Q1. 

“Considering that in Q1 we were entering a crypto winter, these numbers are inspiring and speak in favor of the industry’s resilience,” the report stated.

Retail investors as a whole increased their crypto purchases in Q2, with those who identified as investing in or trading crypto on a daily or weekly basis climbing from 56% in Q1 to 60% in Q2. One in four institutions indicated that they plan to make crypto a primary form of investment. 

Overall, the crypto industry has held up remarkably well in the face of a major market correction. “Although trust in crypto has declined slightly in some regions, investors are taking this time to either increase their investment or expand their knowledge of crypto,” the report concluded. 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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