About half of the respondents in the recent research carried out by Civic Science said they had sold part of their holdings. Most of them were low-income earners who had invested in crypto before the catastrophic market condition in June.
Survey Shows Many Low-income Earners Sold Their Assets
Civic Science, a crypto analytic firm based in America, surveyed thousands of digital assets investors this past week. The research aimed to know how the market crash affected investors.
According to the survey report, 20% of the respondents sold out a small portion of their digital assets. Meanwhile, about 26% of them said they had sold most of their assets.
As expected, most investors with more buoyant income responded that they still hold onto their assets. A small fraction of them (28%) sold out a small portion of their assets.
On the contrary, 65% of low-income earners sold a large part of their stored digital assets. The market crash has also discouraged most people from investing in crypto.
According to stats, 54% of respondents do not want to invest in crypto because of its high volatility. However, their number has increased to 58% after the massive market crash.
The research showed that it was not the high price fluctuations that made people stay away from crypto. About 30% consider crypto illegal, whereas 23% said it is too volatile for their liking. Furthermore, 10% dont have the funds to invest in crypto, while 5% do not have a clue how to invest.
Only The Wealthy Still Hold Most Of Their Assets
According to many other studies, one can deduce that crypto assets investment benefits rich folks more. In 2021, CNBC research revealed that about 83% of millennial millionaires hold digital assets.
In addition, 48% of the respondents intended to increase their portfolio, while only 6% considered reducing their portfolio. The report further revealed that 53% of the rich surveyed have 50% of their portfolio filled with cryptocurrency.
Meanwhile, 30% said they have 75% of their portfolio filled with crypto. Forbes research showed that billionaires are also interested in digital assets investments.
According to the research, one out of three billionaires with a minimum net worth of $1B are likely involved in crypto investment. The two billionaires, Sam Bankman-Fried and Mark Cuban, the founders of FTX exchange, and Dallas Maverick, respectively, were also surveyed.
Sam said digital assets made up more than 76% of his portfolio. On the other hand, Mark said that even during the crypto market crisis, his digital assets still did well than his tech stocks.