The US is still leading the world despite the ongoing bear market. A survey conducted last year showed that 25% of retail investors in the United States owned Bitcoin. The number does not seem to be going down despite the prices of most cryptocurrencies recording declines.
US retail holders continue buying Bitcoin
Cryptocurrency activities have skyrocketed globally. In the US, retail investors have continued to buy Bitcoin despite uncertainty on whether the market has bottomed or more dips should be expected.
A recent survey by DebtHammer said that many retail investors in the United States had taken out loans at high-interest rates to buy cryptocurrencies. Moreover, over 50% of these investors had made losses from the crypto investments after acquiring these loans.
The DebtHammer survey showed that more than 15% of these investors used personal loans to fund their investments. The other types of loans used include title loans, and mortgages, with some even turning to student loans to make these crypto investments.
Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.
The statistics also showed that the low prices during the bear market were causing more retail investors to take loans and buy cryptocurrencies. Some believed that the prices of digital assets were “historically low,” and they would be a good investment option if the prices were to register an uptrend.
US inflation skyrockets to new highs
Several factors are prompting retail investors in the US to buy Bitcoin and other cryptocurrencies. Last month, the Federal Reserve announced that inflation had reached a 40-year high of 8.6%, one of the highest rates globally.
Countries facing high inflation levels have recorded an uptick in cryptocurrency trading activities. As traders look for alternative ways to store their wealth, cryptocurrencies have become a preferred option, especially stablecoins.
As cryptocurrency activities in the US continue to increase, the regulatory framework has not been very friendly. The United States Securities and Exchange Commission (SEC) currently has oversight over the crypto space. The SEC has rejected applications for a spot Bitcoin exchange-traded fund (ETF), and it was even recently sued by Grayscale for failing to approve its application for a spot Bitcoin ETF.
Despite the harsh regulatory climate, the US is leading in crypto-based activities. The country overtook China to be the largest hub for Bitcoin mining activities. This comes despite concerns over the energy needed to sustain proof-of-work mining algorithms.
- Bitcoin Price Prediction 2022 – 2030
- Why is Bitcoin Going Up – Celsius BTC Liquidation Price Now $5k
- Where to Buy BTC
Crypto Signals – Learn to Trade
- Free Telegram Community & VIP Channel
- 3 – 5 Crypto Signals Daily
- VIP Access when Opening an Exchange Account
- Market News & Technical Analysis – cryptosignals.org
Source: Business 2 Community
Republished by Blog Post Promoter