Share of Americans Investing in Cryptocurrency Grows by 125% Despite Crypto Winter

The cryptocurrency market is in turmoil, with assets such as Bitcoin (BTC) posting significant declines in recent months, a factor that is likely to influence the investment trend among Americans. However, the number of investors choosing to engage in this sector is increasing despite the continued uncertainty of the future as digital assets operate in an environment marked by a faltering economy and the threat of harsh regulations.

In particular, data obtained by Coinphony indicates that as of the summer of 2022, 18% of Americans have invested in various cryptocurrencies. The number represents a growth of 125% compared to the 8% of Americans who had a share in the crypto space in the summer of 2020.

By the summer of 2022, 15% of Americans were still planning to invest in cryptocurrencies, confirming confidence in the sector despite the market downturn. The value represents a growth of about 36.36% from the 11% of Americans who expressed their intention to venture into cryptocurrency in the summer of 2020.

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Data on Americans’ investments in crypto is taken from Statista Global Consumer Survey which sampled the opinions of more than 1,000 American adults between the ages of 18 and 64.

Investors are ignoring Crypto Winters

Interestingly, Americans’ increased interest in cryptocurrencies during extended bear markets partly ran counter to historical trends as the drop in price did not attract more people.

Meanwhile, in recent months, the sector has been plagued by fraud incidents, with the infamous Terra (LUNA) ecosystem crashing in the center, with the crash taking place as more investors turned to stablecoins to help mitigate cryptocurrency volatility.

Above all, growth indicates that relevant investors can tolerate volatility. These investors will likely understand that cryptocurrency remains an emerging asset class and technology whose impact on the public financial sector is still not fully known. Along these lines, some investors choose to ignore short-term price volatility and focus on potential future growth.

Driving factors for continued investment in cryptocurrency

Many drivers will likely recognize this trend, with quick profits. Over the years, it has been observed that cryptocurrencies provide significant gains in a short period of time compared to traditional assets such as stocks. In this case, investors who missed last year’s uptrend led by assets like Bitcoin and Ethereum (ETH) are likely to buy higher with the expectation that the sector will rebound.

This in particular is one of the riskiest motives for investing in digital assets. In most cases, the success of this strategy depends on the investor’s ability to ideally determine when to buy and sell.

It is important to mention that young investors are likely to be among the proponents of investing in cryptocurrencies because the majority have a genuinely positive view of the sector. Therefore, these assets projected prices. On the other hand, older investors are known to be more cautious about the industry and the risks associated with it.

Growth among investors has also been linked to the ability to easily purchase cryptocurrencies with the emergence of new applications that cater to retail traders.

At the same time, leading institutions have embraced cryptocurrencies, launching a chariot of private investors. Interestingly, some institutions may be relying on sector growth, as shown by America’s oldest bank, BNY Mellon, which received regulatory approval to become the first major lender to offer crypto services.

Meanwhile, other giant institutions are likely to take a back seat and keep an eye on market trends.

Potential Obstacles to Investing in Cryptocurrencies

Given the advanced crypto sector in the US, it’s worth noting that there are potential barriers. Regular people have moved away from cryptocurrencies due to factors like complexity. Some investors still think the sector is too complex to comprehend.

In the long run, crypto advocates argue that the pace of investment is likely to grow as previous years have laid the foundation for building the right infrastructure.

In addition, cryptocurrencies are likely to be more integrated into sectors such as payment systems. However, regulatory uncertainty remains a serious concern for most Americans. Notably, the White House and Congress are leading various initiatives to clarify this sector.

The share of Americans investing in cryptocurrency has grown by 125% despite Crypto Winter debuting on Coinphony.

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