Asset management company Man Group wrote in a recent report that although the correlation between Bitcoin and major asset classes is close to zero, in the past ten years, whenever the stock market fell by 5% or more in a month, Bitcoin will fall by 86%, with an average drop of 13%.
Matthew Tuttle, chief executive of Tuttle Capital Management LLC, also said: Cryptocurrency bulls tend to think that Bitcoin is an inflation hedging tool, but it is more of a risk asset.
However, according to surveys, more and more investors regard Bitcoin as a value-preserving asset.
Last weekend, Bitcoin rebounded after experiencing its 434th plunge. In addition, an investigation by American asset management company Grayscale confirmed that compared with previous years, investors’ concerns about Bitcoin’s systemic risks (including cyber attacks fluctuations and regulatory requirements) have decreased, which shows that investors’ acceptance of Bitcoin is getting higher and higher.
The survey respondents are between 25 and 64 years old, and they have a specific say in family financial decisions. All interviewees participated in some form of personal investment, and their investable household assets were at least US$10,000 (not including retirement plans or real estate assets). Their family income was at least US$50,000.
The survey found that Americans holding Bitcoin rose from 23% in 2020 to 26% in 2021.
The survey also found that many people choose to continue holding rather than cutting their positions in Bitcoin. This shows that more and more investors regard Bitcoin as a value-preserving asset and long-term investment. More than half of the investors surveyed have invested in Bitcoin for the first time in the past year. Currently, in this group, most investors still hold Bitcoin.
This further confirms that retail investors and whales love to buy on dips, while investors with medium capital are selling in an attempt to scare the market away. This means that most people have no incentive to sell because Bitcoin has not yet seen a significant shrinkage.
As the price of Bitcoin continues to rise, it is increasingly difficult for investors to ignore it. Despite many crashes, Bitcoin’s current trading price is almost the same as this year’s average price.
In addition, the survey shows that more than half of investors believe that Bitcoin is a long-term investment and is in line with their overall investment strategy.
Grayscale also pointed out that more than half of cryptocurrency investors know Bitcoin and hear about Dogecoin and Ethereum. 56% of investors have heard of Ether, and Dogecoin is more “known,” with 74% of investors knowing the currency. Less popular cryptocurrencies, such as Litecoin, Cardano, and Tether, have also received attention from investors, and their awareness is above 25%.
The survey results show that most investors who hold Bitcoin also hold at least one other cryptocurrency. The point is that investors are well aware of the high risks of cryptocurrency.
Although Munger, Yellen, and Warren criticize cryptocurrencies, more than 30% of investors still want more financial institutions to provide Bitcoin.
The survey shows that investors are willing and particularly eager to include Bitcoin in their investment portfolios. In addition, baby boomers are becoming increasingly interested in acquiring bitcoin investment products.