As per a survey that Morning Consult conducts, it is seen that 38% of the crypto holders are turning to cold wallets, which has seen an increase of 24% from last year. The latest report by the same source has also said that the regulations, use cases, and wallets are top of the mind for crypto investors, as seen for this year. Many of you are either planning to invest in crypto or are active crypto investors. But there are certain trends you need to know before you decide on crypto trading. In this article, we will talk about the current crypto scenario and why it is seen that crypto holders are turning to cold wallets. So, without any delay, let’s dig deep into the matter.
What is the Scenario So Far?
It is seen that despite the bitter crypto winter and the collapse of the silver gate, SVB, and Signature Bank, the crypto investors have largely continued to associate with the HODL.
As per a report, as of March 17, 2023, it is seen that 10% of consumers said that they had moved all their money somewhere else, which resulted due to the direct effect of a bank collapse. However, these people were disproportionately high earners, they were more likely to own cryptocurrency as against the general population, and most of them were millionaires.
As per Nicki Zink, industry analyst team lead at Morning Consult, 39% of the millionaires said that they owned cryptocurrency, which is 19 percentage points higher than the general population.
More Survey Results:
Gen Z’s ownership came in as “on par with the general population” at 21%; Zink said 20% of all consumers disclosed owning crypto. The Adults who surveyed the “own cryptocurrency — and bitcoin specifically had held steady throughout the year 2022 and in 2023 so far; this information is conveyed as per the report. It is also seen that Since January 2022, the data has been fluctuating a few percentage points and with a percentage of 20 of those surveyed saying in March that they still owned cryptocurrencies. Comparatively, 15% owned Bitcoin.
What Happened in 2022?
The year 2022 saw the collapse and the bankruptcies of BlockFi, Voyager, Celsius, FTX, and Three Arrows Capital, along with that TerraUSD, which has wiped billions from investors. The volatile nature of the crypto may have influenced the way investors approach the crypto. This is as far as 24% of what people have surveyed in the report, and they have also wanted more regulation within this space, which has increased to 17% since the last year.
What to Expect:
So far, it is unclear what kind of regulation the respondents had been looking for, and as per Zink, “We see more consumers saying crypto should be even more regulated than these more financial assets. Specifically, the share of adults who believe crypto should be more regulated has increased 6 points since last March.”
Some have also accused the SEC of the “regulation via enforcement,” It said that the regulatory requirements were unclear to many of the crypto firms, including Coinbase. This is also true when the CEO of CoinBase said that since the picture of regulation is not clear in the US, anything can be on the table, including relocating as per the report given by Telegraph.
More on Coinbase:
Coinbase has served a notice of Wells, which served as an alert to the companies before the enactment action related to the securities violations, and this was by the SEC last month. The SEC has also accused the crypto exchange Bittrex of listing the tokens which are considered securities on its platforms. Before the charges, Bittrex has also announced its intention to leave the US. All these could be influencing the way investors approach their wallets.
What’s More:
As per Zink, “More cryptocurrency owners are turning to cold storage,” There are nearly 40% of the crypto who have said that they have a cold wallet and this has increased to a 58% increase from January 2022. She also quoted, “While it’s clear owners weren’t swayed away from crypto itself, even with major downfalls of crypto companies and fluctuating bitcoin value, how they store it seems to be shifting,”
Some Important Crypto News to Look at :
- Bitcoin Below $30,000 On April 17: Good news for all Bitcoin lovers because it has finally surpassed the psychological level of $30,000, but it is also currently retracing to find the credible support that it will be needing.
- BTCUSD has also formed an inverse head and shoulders pattern on the daily chart, which suggests that there will be more such upside from the end of Bitcoin in the longer run.
- The Bitcoin mining difficulty is also seen to be at an all-time high, and it has seen this height in the last five weeks this week it is set to inch higher – currently estimated at 1.60%.
- The BTCUSDT Open Interest has been closed on the week of April 16 at about 2.38% lower than the start of the week on April 10.
- The traders are slightly optimistic looking at the numbers and the way Bitcoin is functioning, and the BTCUSDT Long/Short Ratio closed on April 16 at 0.87 as 53.46% of all Binance Futures accounts with an open position in BTCUSDT were net short, while the other 46.54% were net long.
So, folks, since we have given you a good insight into how the cold wallet is becoming popular amid the bank and crypto failure. Do you think investing in crypto at this point is a good decision? As for me, I would suggest always looking at the market risk and then invest
Conclusion:
That’s all, Folks. I hope the article helped you in getting all the information you needed.
