Cryptocurrency Market Crash Shifts Investor Demographics

It goes without saying that the cryptocurrency market is in a serious slump – it has been for quite some time. Even though the bleeding has slowed down significantly, many investors have since jumped ship but, as it turns out, many more institutional investors are running in the opposite direction. The supposed busting of the bitcoin bubble has shifted the demographics of investors with the number of individual investors dwindling by the minute. Not to worry though, there is still enough enthusiasm and hope to drive the crypto industry to the eventual market.

One crypto expert points out that nearly all of the people who were freaking out in the wake of the huge price plunge in the crypto market were people who were fairly new to the world of crypto. Most crypto veterans and die-hard fans are still holding on for dear life. As much as this may be true, it is undeniable that individual investors are either leaving or considering such a move. However, there has been an increase in interest shown by institutional and professional investors who will now be sharing the same ecosystem as the other cryptocurrency holders.

According to Hunter Horsley, the Bitwise CEO, there is still a lot of promise in as far as the state of crypto is concerned. Horsley believes that the current market is in fact ‘par for the course’ and claims that he has even seen a significant increase in investors. He even said that about 20 percent of his clients have even increased their investment in crypto assets. Apparently, as individual investors give up and cut their losses, the institutional investors are realizing the opportunity to buy in at low. The influx of these professional and institutional investors has been attributed to an eventual ETF launch.

Is This A Purge?

Well, it certainly seems to be. Needless to say, most individual investors bought into with the intention of getting rich quickly – clearly, that was in no sense a safe bet. Institutions and professionals have, however not been curbed by the market plummet and their interest even seems to be increasing. The crash is essentially taking out all those people who are supposedly not interested in “solving real problems” and “real use cases.”

There are so many similarities between the dot-com bubble and the contemporary crypto market and this, in a way, makes the case for the fact that crypto may actually be poised for companies or parties that are looking to establish long-lasting value and profit. Up until now, crypto has created very few useful or meaningful products and has been driven primarily by speculation which means that the crash was inevitable. On the flip side, an increase in institutional investment, as well as increased adoption of crypto-related technology, could finally facilitate the creation of actual, long-term and meaningful value.