During a year of global uncertainties, crypto markets are experiencing their biggest challenge yet. Bitcoin is still one of the best performing assets this year, as investors continue to express interest in alternative assets. Bitcoin IRA, a digital asset IRA company recently conducted a survey to address overall sentiment. Results show that during traditional market turmoil, investors are still bullish on crypto assets and want to engage in interest yielding protocols.
Crypto Appetite Continues To Grow
As mentioned above, crypto markets have experienced their biggest obstacle yet in 2020. Since inception, crypto-assets have thrived during a global bull market. Up until 2020, they didn’t witness financial turmoil, so it was difficult to assess how digital assets like Bitcoin would fare during financial distress. When COVID-19 fears surfaced in late February, pretty much every asset class sold off, causing a “liquidity crisis.” After a near -50% sell-off, Bitcoin quickly rebounded which caught the eye of retail and institutional investors. On a year to date basis, Bitcoin has continued to outperform the global markets, maintaining +26% growth during unprecedented times. A survey conducted by Bitcoin IRA, the world’s largest digital asset IRA company, outlined that investors are still extremely bullish and willing to take on higher degrees of risk.
Bitcoin IRA conducted a survey in which 300 participants were involved. Participants included company clients, prospects, and account holders. According to reports, “57% of Bitcoin IRA users buy and hold cryptocurrency as a long-term investment.” In addition, “42% believe the price of Bitcoin will be $15,000 or higher by the end of the year.”
Even with many altcoins struggling in 2020, participants expressed a lot of interest in “alternative coins.” It’s best believed that many of these investors think the next bull run could push altcoins to their all-time highs. With many altcoins well below their all-time highs, some of these participants could also be investors that bought Bitcoin at its peak and hope to recapture gains from an altcoin push.
COO at Bitcoin IRA, Chris Kline stated that:
"Bitcoin IRA investors are expecting to make gains in crypto that out-perform traditional assets in 2020. We're so excited to be continuously working on new investment offerings and upgrades based on their feedback as we work to help them reach their retirement goals."
Investors Want To Earn Interest
A high majority of digital asset investors want to earn interest on their holdings. According to the report, “53% of respondents are interested in earning interest on their investments, either by staking Ethereum or lending.”
With near 0% interest rates in traditional markets, investors aren’t making money on their cash. As a matter of fact, many investors fear a scenario where the Federal Reserve imposes negative interest rates, which would be a big blow to investors that hold cash at banks. These developments have fueled the growth of DeFi and lending. According to a recent report by Visionary Financial, 5 of the top 10 DeFi protocols are lending based. As investors look for interest on their crypto holdings, money has flooded into DeFi markets. In 2017, the total value locked in DeFi was nearly $0. If we fast forward to 2020, over $1 billion has flocked to DeFi, most of which is involved in the lending sector. According to Bitcoin IRA's site, the firm also plans to roll out products focused on interest accumulation.
More About Bitcoin IRA
Bitcoin IRA is believed to be the world’s largest digital asset IRA technology platforms. The company has revolutionized the retirement industry, letting investors purchase cryptocurrency and physical gold in their retirement accounts. The self-directed retirement accounts also leverage multi-signature digital wallets from BitGo to insure safety. Since 2016, the company has processed over $400 million in investments and caters to 50,000+ account holders.
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