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Americans invested in cryptocurrency doubles despite ‘crypto winter’

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The prevailing crypto winter has partly forced some investors to take a back seat while monitoring the market for signs of a possible rally. However, this is not the case for a section of American investors who seem unfazed by the prolonged market downturn.

According to data acquired by Finbold, the share of Americans investing in crypto surged by 125% between the summer of 2020 and 2022.

In 2020, only 8% of Americans had invested in crypto, while as of 2022, the number stands at 18%.

The growth trajectory is also reflected in the number of investors intending to participate in crypto.

As of the summer of 2020, only 11% of Americans had plans to venture into crypto, while in 2022, the figure grew by 36.36% to 15%.

Volatility

Amid the downturn in the market, the research identified potential drivers for investors to show resilience and continue betting on different assets.

“The growth indicates the investors in question can stomach the volatility,” the Finbold research found.

“Such investors likely understand crypto is still an emerging asset class and technology whose impact on the general finance sector is yet to be fully known. In this line, some investors opt to ignore the short-term price volatility and focus on potential future growth.”

However, there still lingers uncertainty that might impact the general crypto market.

Notably, the extent of the prevailing macroeconomic factors and the regulatory debate will potentially influence the continued involvement in the sector.