- 87% of respondents in a survey by cryptocurrency-asset broker Voyager Digital plan to buy more digital currencies in upcoming months.
- Voyager said the survey indicates crypto buyers will take advantage of the recent market selloff led by bitcoin.
- Crypto buyers are also bullish on cardano and optimistic about a bitcoin ETF this year in the US.
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The recent selloff that wiped out more than 20% of the cryptocurrency market’s valuation appears to have emboldened buyers to invest even more in digital currencies, according to a survey conducted by cryptocurrency-asset broker Voyager Digital.
87% of respondents in the company’s second-quarter retail investor sentiment survey said they plan to increase their crypto holdings over the next quarter. The survey captured responses from 3,671 participants at the end of May, during which bitcoin led a plunge in prices throughout the market.
The survey also showed an average of 7 out of 10 investors holding bullish sentiment for bitcoin price over the next three months.
Threats of bitcoin mining and trading crackdowns in China, taxation efforts on cryptocurrency transactions in the US and Tesla’s decision to stop taking bitcoin as payment for its electric vehicles stoked a 47% slide in bitcoin’s price during May, driving it to a low of $30,681.50 from $57,750.18 at the start of the month.
“It’s encouraging that investors remain bullish following the recent market correction,” said Steve Ehrlich, Voyager’s CEO, in a statement. “The fact that the vast majority of our large sample size of investors are more confident in the future of cryptocurrency shows how people see May’s volatility in many crypto-assets as a buying opportunity.”
Bitcoin’s market capitalization has dropped almost 30% to $766.6 billion since the start of May through mid-Monday, losing grip of the $1 trillion market-cap level.
The cryptocurrency’s market capitalization has been dragged down by roughly 21% from the start of May through midday Monday, standing at $1.74 trillion from $2.21 trillion. But the market cap has recovered somewhat after falling to $1.3 trillion in late May, aided by bitcoin’s price rising back above $40,000.
The survey showed 39% of respondents predict bitcoin’s price will move up to between $56,000 to $70,000 by the end of the third quarter, while 28% foresee the price between $41,000 to $55,000.
Bitcoin jumped above $40,000 on Monday after Elon Musk tweeted that Tesla would accept bitcoin payments again once mining can be done using cleaner energy.
Looking at so-called altcoins, Voyager said investors are most bullish on cardano, at 55%, followed by dogecoin at 11%. Meanwhile, more than nine of 10 investors expect the Securities and Exchange Commission to approve the US’s first bitcoin ETF this year.
Voyager said its results were based on a sample set of more than 1.6 million verified users in an anonymous online survey. Respondents were chosen based on a “highly active trader status” on the platform, with those users executing between 50 to 100 trades over a 30-day period.