Bullish cryptocurrency investors shrug off the bear market

September 07, 2018
Chris Wheal

SharesPost Inc., founded 2009. (PRNewsFoto/SharesPost Inc.)

Despite the bearish conditions that have prevailed in the market during 2018, most retail and institutional investors in cryptocurrencies are cautiously optimistic on prospects for the next 12 months, a survey by SharesPost suggests.

The San Francisco private securities firm’s newly-published report Cryptocurrency and Blockchain Survey: Consumers Bullish, Investors Cautiously Optimistic’ states that the majority of investors it surveyed, including accredited and retail, intend to buy more digital currencies in 2019.

The company polled a total of 2,490 retail investors and 528 accredited investors in July, with questions addressing the market outlook on initial coin offerings (ICOs), ether and general investment plans.

Keeping the faith

“Since we conducted our inaugural survey in January 2018, Bitcoin and Ethereum prices have declined about 48%,” sais Rohit Kulkarni, managing director at SharesPost. “But crypto owners haven’t lost faith. The majority of investors and consumers continue to find cryptocurrencies appealing.”

The new survey shows that “59% of investors and consumers plan on buying more digital currencies over the next year, a figure marginally lower compared to our first survey, particularly among investors.”

He added: “Importantly, this survey indicates that this correction is separating long-term believers from short-term day traders. Investors remain bullish on bitcoin (BTC) and ethereum (ETH) over the next 18 months because they are the leading digital currencies globally.”

Kulkarni also noted the limited correlation between cryptocurrencies and traditional finance products makes them an “ideal way” for portfolio diversification.

Bitcoin still favourite

BTC remains retail investors’ favorite digital asset for investments, with accredited investors tending to favour ETH and Ripple (XRP) the research suggests. although this year’s market correction has seen BTC has emerged as the main preference for both groups.

Meanwhile, more investors believe cryptocurrencies and blockchain technology “may take longer” to go mainstream. Only 27% of accredited test-takers remain positive about widespread adoption before 2020, compared to 51% in the previous survey.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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