A new survey has found that nearly 45 percent of cryptocurrency investors hold their assets with a longer-term view while waiting for market prices to improve.
The survey, which was conducted by South Korean crypto exchange Bithumb, polled 2,507 people for its study. In a report from Yonhap News, the figures showed that 42.8 percent of traders invested their money into digital currencies as part of their long-term management plans.
Of those surveyed, 27.1 percent were seeking short-term profits, while a mere 13.1 percent indicated that they had invested to get a feel for the financial market. Even though 44.1 percent of those invested stated that they would limit how much they put into the market when the government imposes capital gains taxes, 39.5 percent said they would maintain the investment they had in place despite the tax. A further 4.4 percent claimed that they would increase the money they put in, whereas 13.1 percent said they would take all of their money out.
Since the end of December 2017 the market has experienced a roller coaster ride in prices. With Bitcoin’s value reaching within touching distance of $20,000 mid-December, the market saw a surge of interest from new investors. Fast-forward six months later and prices within the industry have slumped. According to CoinMarketCap, the number one cryptocurrency is trading at $7,716, representing a 2.01 percent rise in seven days, at the time of publishing. The market cap of the entire industry isn’t faring any better, and is currently valued at $347 billion, a significantly low figure from its more than $800 billion value in January.
Yet, regardless of the fact that market conditions are anything but ideal at the moment, the fact that investors are willing to keep their money in the industry indicates they have some confidence in market prices rising again. This belief is indicated in the fact that a survey from the Bank of Korea (BoK) in March found that 40 percent of adults in the 30-something age bracket in the country were willing to invest in the cryptocurrency market.
Not only that, but a separate survey conducted by the Korea Financial Investors Protection Foundation in December showed that those in their 20s in South Korea were most active with investing in the market. At the time figures indicated that 22.7 percent had bought digital currencies.
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