New research from the crypto platform TotemFi reveals that most retail investors are not put off by the recent volatility in the crypto market.
These are the results of a survey of 2,000 people on a variety of topics, including the recent GameStop situation and concerns about traditional financial institutions.
According to the survey, 54% of retail investors surveyed admit that they have not yet been deterred by the volatility of the crypto market, and their confidence in Bitcoin as an investment remains undiminished. In contrast, 42% say that volatility has affected their confidence, while the remaining 4% say they are unsure.
Another surprising result was the percentage of net worth that respondents thought should be held in cryptocurrency. As many as 30% answered 90% or more, with 20% answering 10% to 30%. This was followed by 17% who thought they should hold between 30% and 50%, and 13% who thought it should be below 10%.
However, the fact that 62% of respondents said that cryptocurrencies were the market that investors should have the easiest access to suggests that the sample could be strongly in favour of this new asset class.
On the other hand, 36% also say that the recent GameStop situation has made them lose faith in traditional financial institutions altogether. 21% said they trusted them slightly less than before, and only 7% said their level of trust was the same as before.
Furthermore, 41% of respondents cited corruption as the main source of concern for traditional centralized financial institutions, followed by high barriers to entry (29%), too many intermediaries (18%) and cybersecurity (6%). Only 6% say they have no concerns at all.
The confidence of crypto retail investors
TotemFi is a recently launched DeFi forecasting platform, and CEO Jolyon Layard-Horsfall commented on these results by saying:
“Historically, the run up to March is a very volatile period in cryptocurrency markets. Last March BTC fell by 28.9%, and in March 2018 by 39.9%. However, in all instances the price quickly rebounded, and March corrections are often followed by long bull runs and, frequently, by new all-time-highs. The results of this survey undoubtedly show that investors are aware of these historic trends, and are refusing to let brief stints of volatility shake their confidence in the strong fundamentals and growth potential of BTC”.