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Analysis: Bulls give Bitcoin an ‘all clear’ sign to resurge beyond $52K
The road to recovery wasn’t tough to navigate for the world’s largest cryptocurrency, Bitcoin [BTC]. After multiple struggles…
The crypto sector – in specific Bitcoin – has witnessed extraordinary rise already this year with BTC’s value surging by 240% compared to 2020, therefore giving retail and institutional investors more reasons to invest in digital assets rather than mainstream investment platforms.
In fact, 52% of crypto users believe crypto to be a source of income with 55% admitting to owning digital assets as part of their long-term investment strategy, according to a report by Binance Research.
Dubbed Global Crypto User Index, the report assessed more than 61,000 crypto investors spanning across 178 countries between 15 September to 25 October 2020 and aimed to understand crypto holders’ profiles, attitudes, preferences, and behaviors in the cryptocurrency industry.
The report highlighted that majority of those surveyed preferred to HODL digital assets rather than sell them with 39% saying that their “usage” of cryptocurrencies is through Hodling so they can capitalize on the continuous price gain. Furthermore, 28% used their assets for buying other cryptos while 22% invested their crypto for staking and lending.
Ironically, a mere 11% use digital coins for making payments. This is testament that mainstream crypto adoption is on an upward trek as of now.
A spokesperson from Binance Research said that to ensure more efficiency and safety, it’s key to “understand the commonalities and differences between retail crypto users across the different profile types, as well as across different countries and markets.”
“We are seeing accelerated adoption of cryptocurrencies as more major players show support and provide additional channels for people to invest,” the spokesman added.
Bitcoin booms among other assets
Given that Bitcoin touched an all-time high of $42,000 in January this year, it’s no surprise that it was regarded as the crème of all cryptocurrencies as 65% of users admitted they were driven to buy Bitcoin more than other assets.
Additionally, a significant number of respondents confessed they don’t have much confidence in stablecoins with 78% saying they “would rather use bank coins instead of stablecoins.” The report also added that this is because its “adoption is primarily driven by the expected future utility for crypto assets.”
As BTC is trading at $37,600 at the time of writing, all eyes are on the asset.
