The Deutsche Bank report, “The future of cryptocurrencies”is an unlikely but welcome source of hope during the current crypto market jitters, and sheds light on the potentially bullish activity of cryptocurrencies.
A critical survey for the report suggests that neither traders nor investors are likely to part with their cryptocurrency holdings in the event of a bear market.
Marion Laboure, director of macro strategy at Deutsche Bank, told Cointelegraph:
“It is interesting to note the strong optimism regarding cryptocurrencies. Even in an extremely bearish cryptocurrency market in which prices fell by 80%, less than half of investors say they would reduce their investments or leave the market.”
DB surveyed 3,250 US consumers in early December 2021, of whom 680 use cryptocurrencies. The survey was intended to be representative of the US census, spanning different genders, ages, income levels, regions, and races/ethnicities.
The report divides the results into three groups: traders, investors and those who only make transactions. Most of them are investors. 80% of those surveyed admitted to having invested in cryptocurrencies in the last six months.
Even in an extremely bearish cryptocurrency market, Less than half of traders (comprising more than 35% of those surveyed) said they would reduce their activities. What’s more, over 70% plan to increase (significantly or slightly) their cryptocurrency activity in the next six months.
Keep in mind that Deutsche Bank did the report in December, and while months can feel like years in the crypto industry, the report surmised that “Very few cryptocurrency bears are active in the space.”
Laboure has spoken out in favor of cryptocurrencies, explaining that while volatility is a given, “they could become the digital gold of the 21st century.” Your employer agrees. Deutsche Bank declared in March last year that Bitcoin (BTC) is “too important to ignore.”
Lastly, in a sign that maybe the idea of getting rich overnight is on the wane, the survey also revealed that “only a small percentage of investors believe that cryptocurrencies are a golden ticket.”
However, traders may have turned to non-fungible tokens, where speculation and euphoria reigned supreme in 2021.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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