After another blood-curdling weekend regarding the uncertainty surrounding Putin's military advance towards the eastern Ukrainian regions and the sequential consequences for the price of bitcoin (BTC), the price has broken down around the $36,600 zone. The past few hours shine a glimmer of light as the price tries to seek strength to break through the $38,000 level.
Over 70% say they will invest in a bear market
So a bullish outlook in the short term, which could continue in the long term if it were up to a consumer survey from Deutsche Bank. This small-scale survey from early December last year reveals optimistic insights. A survey that is crucial to this research suggests that neither traders nor investors will give up their crypto portfolios in the event of a bear market.
Deutsche Bank had surveyed 3,250 U.S. consumers in early December, 680 of whom invested or traded in crypto. The survey was intended to be representative of the U.S. census, covering different genders, ages, incomes, regions and racial or ethnic groups. 80% of this group reported having invested in crypto in the past six months.
The section showing that investors are bullish about crypto stems from an outlined scenario of an extreme bear market. As shown in the bar chart from the survey below, less than 10% of the group in question say they would reduce investments or sell cryptos in such a bear market. Indeed, more than 70% even say they will make significant or small-scale investments in a bearish scenario.
https://preview.redd.it/dhv3zq6uzfj81.png?width=1668&format=png&auto=webp&s=63feacc3e821c5292bb035ec81ae000533846dc6
Optimistic conclusion you may argue about
The implication that can be drawn from this is that the majority of investors want to buy into a bear market. Nevertheless, it is wise to take this research with a grain of salt. Although the results and insights paint an optimistic picture, there are two elements to keep in mind.
First, the sample of the study is quite small. 80% of 680 respondents can hardly represent the U.S. crypto investors, which makes the reliability of the results questionable. Second, the survey was conducted in early December. That is the period when bitcoin still had a relatively high price compared to now.
The current negative sentiment may influence the actual actions of the survey respondents. Nonetheless, this survey illustrates the sentiment of crypto investors in harsh times. Although the reliability of the implications can be doubted, a bit of positivity is always welcome within the crypto sector.
