As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous trends come and go, but none quite like the meteoric rise of cryptocurrencies among retail investors. The IOSCO report’s findings, released on October 9, highlight this phenomenon, showcasing that up to 30% of retail traders in six surveyed jurisdictions owned crypto assets last year – a staggering increase from the 1-5% range reported in 2020.
The ownership of cryptocurrencies has significantly increased among individual investors since 2020, according to a recent study conducted by the International Organization of Securities Commissions (IOSCO).
According to a report published on October 9th, it was found that approximately 30% of retail traders across six regions traded cryptocurrencies last year, marking a significant increase compared to the 1-5% range reported in 2020.
The study underscores that despite market turbulence, such as the “crypto winter” of 2022, there’s been continuous growth in crypto asset interest. Investors from both developed and developing countries continue to show a strong appetite for investing in cryptocurrency, with younger investors (under 40), particularly males, leading this trend.
Approximately 60% of American traders below the age of 35 have either pondered over or actively bought cryptocurrencies, while a significant 44% of Generation Z (individuals aged between 18 and 25) embarked on their investment journey through cryptocurrency.
Nevertheless, IOSCO expressed concerns about the risks associated with cryptocurrencies, such as market instability, fraud, and lack of regulation. The report underscores the importance of enhancing investor education and protection to tackle these challenges effectively.
According to the data, key reasons behind cryptocurrency investment seem to be the desire to avoid missing out on potential gains (FOMO), guesswork about future price increases, affordable initial costs, and suggestions from peers or online networks.
Regardless of high-profile failures, persistent market fluctuations, and an increase in fraudulent activities, the appeal of cryptocurrency remains strong, as new investors continue to drive interest.
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2024-10-10 11:16