A new report by KPMG indicates that there’s been a resurgence of interest from German investors towards cryptocurrencies.
After a difficult year for the sector, there’s been a recent surge in investments. This development occurs as the market prepares for the anticipated Bitcoin halving event scheduled for mid-April 2024.
A survey of around 2,400 private cryptocurrency investors in Germany, Austria, and Switzerland reveals shifting investment trends and perspectives in the DACH area. The data suggests a significant increase in crypto investing, as nearly half (54%) of the participants allocated more than 20% of their entire investments to digital assets.
A significant group of investors, who allocate over half of their funds to cryptocurrencies, plan to back the industry for the next three to five years.
The report indicates a growing preference for careful investment approaches among new market participants. Before making any commitments, they are conducting comprehensive assessments. Consequently, crypto service providers must work harder to transform registered users into engaged investors. The significant disparity between account registration and active engagement illustrates this trend.
When it comes to choosing a crypto exchange, security concerns take the top priority for 82% of investors. Additionally, deposit and withdrawal methods, as well as transaction fees, are significant factors for 65% and 62% of respondents, respectively.
Approximately one-third of respondents consider their crypto investments secure, but a larger number raise worries about potential manipulation, regulatory risks, and financial misconduct.
Approximately 91% of investors prefer Bitcoin as their top choice, while Ethereum follows closely with around 78% of respondents holding it. Notably, there has been a significant surge in interest for Solana, experiencing an uptick of nearly 9% compared to the previous year, thus solidifying its place among the leading digital assets in this region.
In the larger financial world, the SEC’s recent decision to approve Bitcoin spot ETFs has brought significant benefits, resulting in massive investments totaling $56.2 billion.
On Friday, April 12, there was a net withdrawal of $55 million from Bitcoin ETFs. Over the past week, this amounted to a total withdrawal of $298.4 million.
Experts believe some investors might be cashing out their profits before the cryptocurrency halving event, with the intention of buying back in during market downturns that may follow.
The approaching Bitcoin halving, which decreases the production of new Bitcoins, is often considered a signal for a bull market. This belief increases the anticipation of greater demand as the Bitcoin market keeps growing.
“Maciej Burno, CBDO of Reality Metaverse, shared with Crypto.news that the diminishing Bitcoin supply could lead to heightened demand, given the expanding crypto industry. Furthermore, the promising growth of alternative cryptocurrencies in AI and gaming sectors hints at an impending bullish market trend.”
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2024-04-15 11:22