The crypto market shows renewed momentum in 2024 after
a challenging period, marked by a historic new all-time high for bitcoin and
steady ownership rates across major markets. The top cryptocurrency is currently trading at an all-time high of above $88,000, according to CoinMarketCap.
Gemini’s latest Global State of Crypto report
highlights key trends, including a promising rebound driven by spot bitcoin
ETFs and resilient long-term investors who view digital assets as a hedge
against inflation.
Top 100 Cryptocurrencies
Despite the volatility that slashed the combined value
of the top 100 cryptocurrencies from $2.7 trillion in 2021 to $830 billion by
late 2022, ownership rates in the US, UK, France, and Singapore have remained
consistent. Around 21% of adults in the US and 18% in both the UK
and France reported owning crypto. Notably, Singapore saw a slight dip in
ownership from 30% to 26%.
In fact, two-thirds (65%) of current crypto owners
view their holdings as a long-term investment, while 38% use it as a hedge
against inflation. Gemini’s report suggests that a majority of past owners
(over 70%) are likely to re-enter the market soon, indicating optimism despite
previous losses.
The launch of spot bitcoin ETFs in the US has been a key catalyst for the 2024 crypto market rally. This new investment vehicle has
attracted billions in inflows, with Bitcoin reaching a new peak of $73,737.94
in March. Gemini’s survey reveals that 37% of US crypto owners
now hold assets via ETFs, and 13% of these investors entered the market
exclusively through ETFs.
The appeal of ETFs lies in their ability to provide
exposure to Bitcoin’s price movements without the complexities of directly
purchasing digital assets. This has opened the market to a wider audience,
including institutional investors who were previously hesitant.
Regulatory Uncertainty
Despite positive signs, regulatory clarity remains a
significant barrier to crypto adoption. The survey found that 38% of non-owners
in the US and UK cited concerns over unclear regulations as a key reason for
staying away from crypto investments.
In Singapore, this figure was even higher, with nearly
half (49%) of respondents expressing regulatory concerns. In contrast, French
investors showed slightly less worry about regulatory issues compared to
previous years.
For the first time, crypto has emerged as a key issue
in the just concluded US presidential election. The vast majority (73%) of
crypto owners in the US say they will factor in candidates’ stances on digital
assets when voting.
More than a third (37%) of US respondents said a
candidate’s position on crypto would significantly influence their vote,
indicating that regulatory clarity and supportive policies could play a pivotal
role in shaping the future of the crypto industry.
The report found that 75% of past crypto owners had
sold their holdings over six months ago, but now, a substantial portion express
renewed interest in re-entering the market. In Singapore, bullish sentiment has rebounded sharply,
with only 10% of investors selling in the past six months compared to 49% a
year earlier.
This article was written by Jared Kirui at www.financemagnates.com.
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