A Large Number of Bitcoin Retail Investors Incur Losses, BIS Study Reveals

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The BIS (Bank of International Settlements) is a Swiss-based bank belonging to 63 national central financial institutions that recently unveiled a new study based on Bitcoin.

First, the BIS offers different banking services to different national central banks. It also creates a platform for regulatory policy and monetary discussions. The organization also provides analysis based on the economies of the nations.

The affiliated central financial institutions of the BIS elected approximately 18 directors to manage its activities. The member central financial institutions consist of the governors of the central banks in France, Belgium, the United States, Germany, the United Kingdom and Italy. These are the permanent directors of the board.

They may also collectively appoint another director of one of the member central banks. Finally, the governors of the other major member financial institutions elect the 11 directors to the left of the full board.

The BIS study

Given the continued movement of the crypto market, it is no surprise that many investors are at their wits’ end. Therefore, the BIS decided to look at the situation of crypto investors regarding the current state of the crypto market.

The findings revealed that about a third of retail investors in BTC are currently losing money. The study was based on the activities of private investors on various exchange applications.

According to the questionnaire, most exchange application downloads occurred when BTC was still above $20,000. The study included data from 2015 to 2022, spanning about 95 countries.

The survey found that the retail investors bought an average of $100 worth of BTC per month. This data shows that approximately 81% of retail investors are currently losing money.

This occurrence raises concerns about entering into crypto investments. The BIS believes that the crypto ecosystem is one of the riskiest investments for anyone. Moreover, its implementation may not benefit the economy in its current form.

Bitcoin continues to attract retail investors

Contrary to what the BIS thinks, investors are still showing more interest in Bitcoin regardless of the current situation. However, the BIS noted that digital currencies are quite volatile. So, should potential investors venture into it, they could incur losses as well.

In addition, these digital assets are still not recognized as global payment methods. This fact also indicates that cryptocurrencies have no government backing.

The Bank of International Settlements also cited that despite Bitcoin’s fall, investors are still trading with this token.

About 75% of the BTC price will be lost within a year, and that’s not all. Given the crash of FTX and 3AC, the BIS noted that investor confidence in crypto investments should be somewhat shaky. At the time of writing, Bitcoin is trading at $16,586.

A large number of private Bitcoin investors are suffering losses, according to the BIS study
Bitcoin price drops on the chart l BTCUSDT at Tradingview.com
Featured image from Pixabay, chart from TradingView.com

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