Nearly 80pc of investors plan on investing in crypto this year
78 per cent of investors plan on investing in cryptocurrencies before the end of the year, research has found.
Uk.Investing.com’s survey of 1,118 UK adults has revealed that 52 per cent of investors plan to invest in Ethereum, 48 per cent anticipate investing in Bitcoin and 35 per cent plan to invest in the Shiba Inu coin.
74 per cent also believe Bitcoin will hit a new record value exceeding $70,000 (£52,083) by the end of this year, while just 26 per cent believe it has already reached its highest point for the year.
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Looking ahead, 37 per cent believe Bitcoin will reach $70,000 to $100,000 in 2022, with 44 per cent predicting a value above $100,000 and 19 per cent saying that the cryptocurrency will not reach the highs of 2021.
The strong interest in digital currency comes despite the fact that 16 per cent of investors admit to having “no idea” what the blockchain system is.
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Nearly a third (31 per cent) of investors said they fully trust Bitcoin and other cryptocurrencies, while 21 per cent do not trust them at all and six per cent believe they are a scam.
The majority (44 per cent) of investors said that new regulatory restrictions represent the biggest problem of cryptocurrencies, followed by a pullback leading to a big sell off (22 per cent) and competition from central banks (15 per cent).
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“A new generation of investors, which entered the market after the rise of commission-free trading during the pandemic, is turning the crypto space on its head,” said Jesse Cohen, senior analyst at uk.Investing.com.
“They’re much more likely to invest in risky cryptocurrencies than the older generation and they’re doing their own research on platforms like Twitter, Reddit and TikTok, instead of paying attention to the Wall Street experts.
“Many crypto investors have turned more bullish on Ethereum over the past year thanks to its increased involvement in Decentralised finance projects and NFTs. With the price still below the $5,000-level, many expect ETH to double its price in 2022.
“That said, Bitcoin is showing no signs of slowing down with mainstream adoption likely to gain further momentum in the year ahead. The flush of ultra-cheap money being pumped into the global financial system by the Federal Reserve and growing fears of inflation will continue to drive money into the crypto space in 2022.”