Key takeaways
- 70% of former cryptocurrency owners are likely to buy more in the next year.
- 37% of US cryptocurrency owners hold digital assets through ETFs.
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Cryptocurrency adoption has remained steady in the United States, United Kingdom, Singapore, and France since 2022, despite recent market slowdowns, according to Gemini’s “2024 Global State of Crypto Report.”
The study reveals growth opportunities in winning back existing owners and attracting new investors, as more than 70% of existing cryptocurrency owners indicate they are likely to purchase cryptocurrencies in the next year.
Moreover, about 65% of current owners are buying cryptocurrencies with a long-term growth strategy. Notably, they have even endured the collapse of the total market capitalization of the top 100 cryptocurrencies in 2022, which fell from $2.7 trillion to $830 billion.
Bullish with the majors
The majority (57%) of cryptocurrency owners are willing to make cryptocurrency a significant part of their investment portfolio.
Additionally, on average, 62.5% of respondents believe that Bitcoin (BTC) and Ethereum (ETH) prices will continue to rise over the next five years, while on average 55% believe there are more reasons to be optimistic in 2024 than during the crypto winter of 2022.
There is also significant optimism regarding the adoption of cryptocurrencies, with 60% of respondents to the survey sharing their belief that many businesses will accept cryptocurrencies as a means of payment within the next decade.
Sales activity down as trading continues
Sales activity has slowed, with 75% of previous owners having left the market more than six months ago.
“The percentage of investors who sold their cryptocurrencies in the past six months is lower than the percentage who sold more than a year ago, indicating that many are holding on to their digital assets as the market has heated up this year,” the report reads.
Additionally, more than one in four (29%) crypto investors said the reason they sold their crypto was because they had lost money on their investments.
In the US, UK and Singapore, 46% of respondents actively trade cryptocurrencies for profit, compared to 34% in France. Inflation hedging motivates 34% of respondents in the US and UK and over 40% in France and Singapore.
Changing landscape in the United States
In the United States, 37% of cryptocurrency owners hold a portion of their funds through an ETF, and 13% own cryptocurrencies exclusively through this method.
Additionally, for the first time, crypto has become a major campaign issue in a US presidential election, with 73% of respondents who own crypto considering a candidate’s stance on cryptocurrency when voting and 37% of them responding that a presidential candidate’s stance on cryptocurrency would have a significant impact on their vote for president.
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