Important Insights
- 70% of former crypto owners are likely to re-enter the market in the coming year.
- 37% of crypto holders in the US manage their digital assets via ETFs.
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Cryptocurrency adoption has remained stable in the US, UK, Singapore, and France since 2022, even in light of recent market downturns, according to Gemini’s “2024 Global State of Crypto Report.”
The research highlights growth potentials through re-engaging former owners and attracting new investors, as over 70% of previous crypto holders express intent to invest in cryptocurrency again within the next year.
Additionally, roughly 65% of existing owners approach crypto with a long-term investment strategy, demonstrating resilience despite the overall decline of the top 100 cryptocurrencies in 2022, which saw a drop in market cap from $2.7 trillion to $830 billion.
Optimistic Views on Major Cryptos
More than half (57%) of crypto owners are at ease with incorporating cryptocurrency as a vital element of their investment portfolios.
Furthermore, an average of 62.5% of survey participants anticipate that Bitcoin (BTC) and Ethereum (ETH) prices will continue to rise over the next five years, while an average of 55% feel more optimistic about 2024 compared to the challenges faced in the 2022 crypto winter.
This optimistic sentiment extends to crypto adoption, with 60% of survey respondents believing that a substantial number of businesses will embrace cryptocurrency payments within the next decade.
Reduced Selling Activity Amid Continued Trading
Selling activity has diminished, with 75% of past owners having left the market more than six months ago.
“The proportion of investors who disposed of their crypto in the past six months is less than that of those who sold over a year ago, implying that many are holding onto their digital assets as the market recovers this year,” the report states.
Moreover, over a quarter (29%) of crypto investors indicated that their reason for selling was financial loss on their investments.
In the US, UK, and Singapore, 46% of respondents actively engage in crypto trading for profit, while this figure is 34% in France. Motivations for trading include inflation hedging, with 34% of respondents in the US and UK indicating this as their reason, compared to over 40% in France and Singapore.
Shifts in the US Crypto Landscape
Within the US, 37% of crypto holders utilize ETFs for some of their investments, with 13% relying exclusively on this method.
For the first time, cryptocurrency has emerged as a pivotal issue in a US presidential election, with 73% of crypto-owning respondents considering a candidate’s stance on crypto crucial for their voting decision, and 37% asserting that this position would significantly influence their presidential vote.
