The current bear market sweeping the cryptocurrency space has had little to no impact on global trust in cryptocurrencies, a new study commissioned by exchange Bitstamp has concluded.
Despite the market downturn, global confidence in cryptocurrencies like Bitcoin (BTC) remains largely unshaken, Bitstamp states in its latest Crypto Pulse report. The study is based on a survey conducted by an independent research firm and includes the participation of 28,000 retail and institutional investors in 23 countries, Bitstamp said.
The survey suggests that the percentage of global retail investors who consider cryptocurrencies to be trustworthy has fallen slightly from 65% in the first quarter to 61% in the second quarter of 2022. The survey points to a similar trend among institutional investors, with 67% of respondents seeing cryptocurrencies as trustworthy in Q2, up from 70% in Q1.
“Considering that in the first quarter we were entering a bear market, these numbers are inspiring and speak to the resilience of the sector,” Bitstamp analysts noted.
The percentage of trust in cryptocurrencies has varied from one country to another, being The US is the country that has experienced the greatest increase in confidence, going from 61% in the first quarter to 73% in the second, according to the report. By contrast, Canada was the only country where trust in crypto fell below 50% in the second quarter. Confidence in cryptocurrencies also remained high in countries such as Brazil, Chile, and Mexico, with a confidence percentage of 77%, 69%, and 70%, respectively.
“We can see that cryptocurrencies have, for the most part, held the confidence of many investors and institutions around the world during a difficult time for the sector,” Bitstamp said. In the meantime, some fluctuations in confidence in certain countries are to be expected, the company noted, adding:
“Although confidence in cryptocurrencies has slightly decreased in some regions, investors are taking advantage of this moment to increase their investment or expand their knowledge of cryptocurrencies. We believe that improving market knowledge about the ecosystem of digital assets is a movement in the correct address”.
Bitstamp CEO, JB Graftieaux, added that The cryptocurrency bear market will offer an opportunity for retail and institutional investors to build for the future.
As Cointelegraph previously reported, the current cryptocurrency bear market is associated with an ongoing crisis of cryptocurrency lending platforms, with big players like Celsius stopping withdrawals amid liquidity problems in June. The bear market is also largely linked to the problems of algorithmic stablecoins after the TerraUSD Classic (USTC) stablecoin lost its peg to the US dollar in May.
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