A recent KPMG survey shows renewed enthusiasm for the cryptocurrency market among German investors.
The recent increase in investment comes as the market anticipates the Bitcoin halving event scheduled for mid-April 2024 after a difficult year for the sector.
The report, which surveyed approximately 2,400 individual crypto investors in Germany, Austria and Switzerland, highlights changes in investment behavior and attitudes in the DACH region. The survey shows that investments in crypto assets are on the rise, with 54% of respondents allocating more than 20% of their total investments to digital assets.
Notably, these committed investors, who have more than half of their assets invested in cryptocurrencies, are poised to support the industry for the next three to five years.
The report also points to a shift towards more prudent investment practices. New market entrants are now undergoing thorough evaluations before committing funds, which requires crypto service providers to step up efforts to convert registered profits into active investments. The gap between registration and active participation on the platform emphasizes this trend.
Security concerns continue to dominate the criteria for choosing a crypto exchange, with 82% of investors prioritizing this aspect. Deposit and withdrawal options and transaction costs are also important considerations for 65% of respondents and 62% of respondents, respectively.
Although 34% of those surveyed believe that crypto investments are relatively safe, the majority still expressed concerns about market manipulation, regulatory changes, and financial crime.
Bitcoin remains the main choice for investors, with 91% of respondents owning it, followed closely by Ethereum at 78%. Investor interest in Solana has increased by 9% compared to last year, reinforcing its position as the top digital asset in the region.
In the broader market context, the recent approval of a Bitcoin Spot ETF by the US Securities and Exchange Commission has been a boon, sparking significant capital inflows. Since its introduction, the Bitcoin ETF has accumulated $56.2 billion.
However, the Spot Bitcoin ETF saw net outflows of $55 million on Friday, April 12, bringing total outflows to $298.4 million in the last week alone.
Analysts suggest these withdrawals may be investors locking in profits ahead of the halving, a strategy that often involves reinvesting after market declines. .
The upcoming Bitcoin halving will reduce new supply of Bitcoin, but is generally seen as a harbinger of a bull market, raising expectations for increased demand as the crypto sector continues to expand. .
“Demand is expected to increase as new supply of Bitcoin declines, especially as the cryptocurrency industry expands. Moreover, as other cryptocurrencies, especially AI and gaming cryptocurrencies, show promising growth. , a bullish trend seems imminent,” Maciej Burno, CBDO at Reality Metaverse, told Crypto.news.
