Canada displays a business climate now dominated by distrust of cryptos. (Photo: 123RF)
LES KEYS DE LA CRYPTO is a section that patiently decodes the world of cryptocurrency and its stock market, industrial and media turmoil. François Remy’s mission is to identify promising entrepreneurs, decode technical progress and anticipate the industrial and societal impacts of this digital currency.
(Illustration: Camille Charbonneau)
The cold of the “crypto winter” has crystallized investor mistrust here, unlike all the other countries surveyed where a more lenient financial climate prevails.
True North currently stands out for its freshness with respect to bitcoin and other digital assets. Among the 23 countries surveyed by Bitstamp, where the exchange platform having surveyed more than 28,000 retail and institutional investors, Canada shows a business climate now dominated by distrust of cryptos.
“It was the only country where retail investor confidence in cryptocurrencies fell below 50% in the second quarter. In all other countries on the American continent, confidence remained high, at 68% or more,” point out the reporters from Bitstamp.
Surge among our neighbors to the south
The international survey taking the pulse of crypto market participants shows a largely positive financial sentiment despite the “crypto winter”, a formula consecrated in the industry to evoke a lasting drop in prices.
It stands to reason that the conditions have exacerbated the caution of small and large investors alike about putting their money into digital currencies. But not to the point of weakening the considerations.
The United States thus recorded the largest increase in optimism, rising in the second quarter to a rate of 73% of investors placing their confidence in cryptos, compared to 61% in the first quarter.
To understand is to adopt
These statistics remain reassuring for enthusiasts of BTC, ETH and company. Nevertheless, we concede at Bitstamp, there is still a lot of room for cryptocurrency awareness in the Americas.
“The data reveals that across the United States and Canada, 44% of individuals surveyed feel they don’t know enough to start investing,” the authors point out. “It is clear that the more people understand cryptocurrency, the more they trust it.”
Individuals surveyed who had some knowledge were five times more likely to find crypto trustworthy than those who said they knew little about it. A proportion even rising to 8 times for those who described themselves as “very well informed”.
Ready for the rebound
No offense to the staunch opponents, 2022 would not yet sound the death knell for crypto assets. The share of retail investors who say they currently invest in cryptos swelled in the second quarter, from 42% to 61% among Americans, for example. The number of individuals who invest or trade cryptos on a daily or weekly basis jumped to 60% over the observed period.
Institutionals have also continued to show interest in cryptoassets, with the majority “actively” recommending crypto to their clients. Institutional asset managers are also more confident in their knowledge. This probably explains why one in four institutional investors indicated that they intended to make crypto a main source of investment.
“Despite the heightened caution, there is no denying that many investors are using this winter to build a solid foundation for the next market upside,” Bitstamp’s survey assures.