Investors regain confidence in cryptocurrencies as market stabilizes

Robust and transparent regulation is key to ensuring the sustainable growth of digital assets, a new report shows.

Cryptocurrency investors have remained resilient through the market downturn, according to the Global State of Crypto 2024 report published by Gemini, a cryptocurrency exchange co-founded in 2014 by twin brothers Cameron and Tyler Winklevoss. The report is based on a survey of more than 6,000 participants from regions including the United States, the United Kingdom, France and Singapore.

Cryptocurrency adoption remained stable in the United States (21%) and the United Kingdom (18%) between 2022 and 2024. Cryptocurrency ownership in France (18%) increased slightly from 2022 (16%), while in Singapore the ownership rate decreased slightly from 30% to 26%.

The study found that as the Southeast Asian market matures, clear regulations will be a key driver for continued growth in the sector.

Price increases boost confidence

Despite these challenges, the report indicates that Singapore remains a stronghold of cryptocurrency innovation, with a significant portion of the population ready to re-enter the cryptocurrency market.

Non-cryptocurrency owners in the US and UK cited regulatory concerns (38%) as a barrier to investing in cryptocurrencies. In France, almost a third (32%) did the same, and in Singapore, almost half (49%) of respondents said cryptocurrency regulation was a concern.

More than 70% of former cryptocurrency owners in Singapore have expressed interest in re-entering the market within the next year, suggesting some optimism amid the recent global cryptocurrency rally.

Additionally, 65% of current cryptocurrency holders across all surveyed regions, including Singapore, said they maintain a long-term investment strategy, viewing cryptocurrencies as a potential hedge against inflation as well as for their growth potential.

The introduction of bitcoin ETFs in the US fueled a resurgence of interest in the topic, with institutional investors driving bitcoin’s price to a new high of $73,737.94 in March 2024.

Crypto on the US Election Topic

While price volatility and market losses were the main reasons investors withdrew from the cryptocurrency market during the 2022 recession, the report indicates a shift in investor sentiment as markets stabilize.

In Singapore, only 10% of cryptocurrency owners have sold their assets in the past six months, down from 49% a year earlier, indicating growing confidence in the market’s future.

The report also reveals that the majority of cryptocurrency owners want to allocate 5% or more to digital assets, while the majority (57%) of cryptocurrency owners say they have no objection to cryptocurrencies becoming a core part of their investment portfolio.

The divide between men and women in cryptocurrency ownership was slightly more pronounced in 2024 compared to 2022, with 69% of cryptocurrency owners identifying as men and 31% as women, compared to 58% and 42% respectively in 2022. However, women are just as likely as men to buy and hold cryptocurrencies for the long term.

Crypto has now become a US election issue for the first time. After years of questioning the asset, former President Donald Trump has now become more favorable to the digital asset, promising to make the US the “crypto capital of the world.”

The survey found that the vast majority of cryptocurrency holders in the US (73%) intend to take into account a candidate’s views on digital assets when voting in the presidential election.