Only a few are reducing investments: Crypto turbulence does not affect most investors

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An average of 18 percent of private crypto investors in Germany, Switzerland, Austria and four other countries have reduced their investments since the fall of 2022, according to a new survey. Consulting firm Strategy&, part of international auditing firm PwC, released the survey on Wednesday.

The Austrians are particularly cautious; 20 percent say they are reducing their crypto investments. This rate was 16 percent in Switzerland and 15 percent in Germany. Strategy& surveyed 3,798 private investors in August, 1,000 in Germany and 500 in each of the two neighboring Alpine countries. Other participants lived in Poland, Türkiye, Saudi Arabia and the United Arab Emirates.

Crypto optimists were in the majority everywhere. On average across all seven countries, significantly more investors (34 percent) sold part of their crypto portfolio to return at a cheaper price later. 14 percent sold nothing or even deposited additional money; The rest held their shares without buying or selling.

In the fall of 2022, the US cryptocurrency exchange FTX collapsed. Before its collapse, the company was one of the largest trading venues for digital currencies such as Bitcoin. The collapse of FTX caused a global crash in the price of cryptocurrencies, and last week a New York court found founder Sam Bankman-Fried guilty of multibillion-dollar fraud.

Even before the scandal, the cryptocurrency had lost a lot of value. For example, the best-known digital currency, Bitcoin, hit an all-time high of over $60,000 in the fall of 2021; Following the FTX crash a year ago, Bitcoin’s value was below $17,000. The price has approximately doubled since then.

“Despite all the crashes and turmoil in the market, crypto excitement is not over yet,” said Philipp Wackerbeck, head of strategy & financial services. Many investors have planned to expand their crypto portfolios and aim to protect their positions in the long term. But the turbulence has not completely disappeared: According to the survey, investors’ willingness to switch trading platforms has increased.

(SDA)

Source :Blick