Nearly half of the surveyed cryptocurrency investors (46%) admitted to selling some of their possessions in the last several weeks. Those with lower salaries were more likely to part with their holdings.
Most HODLers Tend to Be Wealthy
The American-based business intelligence company – Civic Science – polled thousands of cryptocurrency investors to find out how the ongoing market crash affected their actions. 26% said they cashed out a lot of their positions, while 20% sold a small amount.
Unsurprisingly, most financially stable individuals (specifically those earning over $150,000 per year) remained HODLers since only 28% of them parted with some crypto possessions. 65% of those from the lower income bracket, though, sold a chunk of their stash.
The desire to invest in digital assets has also changed due to the price collapse. In January, 54% of the investors said the market volatility is a significant obstacle that could stop them from distributing wealth in it, while currently, 58% share that opinion.
Still, the main reason people stay away from the digital asset realm is not the price swings. 30% believe bitcoin is not legitimate, while 23% pointed out its volatility. 10% admitted they don’t have the financial ability to enter the ecosystem, and 5% do not understand how to buy crypto assets.
Crypto Is Popular Among the Rich
Several other studies have proven the assumption that digital assets are an attractive investment option mainly for rich individuals. A survey carried out by CNBC at the end of 2021 estimated that 83% of millennial millionaires own cryptocurrencies. 48% said they plan to increase their exposure in 2022, and only 6% believe they should reduce their holdings.
The rich millennials have also invested a significant amount of their wealth in bitcoin or altcoins. 53% stated that half of their portfolio is in crypto, and 30% admitted that 75% of their total fortune is allocated there.
Another recent research conducted by Forbes revealed that billionaires are also inclined towards the asset class. According to the results, every third polled person with a total wealth of at least $1 billion has some kind of exposure to cryptocurrencies.
Some notable names on that list include Sam Bankman-Fried – CEO and Co-Founder of FTX – who said that between 76% and 100% of his portfolio is distributed in digital assets.
The owner of The Dallas Mavericks – Mark Cuban – is also part of that club. He even said that during the market collapse, his crypto holdings had performed better than his tech shares:
“It’s no different than investing in stocks, bonds, other assets. Interest rates go up, risk assets go down. My tech stocks have performed worse than my crypto has.”