According to CryptoCompare investors in Crypto withdrew almost $20 billion or nearly 15%of the total assets in November. It caused to low the fund managers’ collective Assets Under Management (AUM) to its lowest point in nearly two years.
Now many of the one-time fans of Crypto are getting out after the recent collapse of the Crypto exchange FTX.
But many of the small-time investors decided to continue to stay in this Crypto Stock Market despite losses as well.
Investors Sold Off About 15% Of All Cryptocurrency Holdings
This year faced crisis after crisis and raised questions about the company’s prospects. The late last year the price of bitcoin jumped some 75% from its peak. Celsius Network and Voyager Digital have filed for Bankruptcy.
In the words of Dennis Drent former executive at a pet-insurance company who lives in Southern California, the world became very different after he step into the Crypto Market last December. Everything was changed and the influence of the Crypto Market was shown in every field of his life.
His life after joining Crypto Market was anxious and he was frustrated by the little marking on generating his bond investments.
At that time he was advised by a bitcoin proponent named Michael Saylor with Fox News’s Tucker Carlson. Mr. Dennis Drent was convinced by the bitcoin proponent that he can’t lose from this.
After a few weeks, he invested in the Grayscale Bitcoin Trust about $25,000 by his side without any permission from the side of his financial advisor.
But it did not work well. He cashed out it in May taking about a 50% loss in there. At that time crypto prices were falling continuously.
In his words, he must be cautious enough before he enters into a market that was lightly regulated and does not fully understand all the facts about it and he should have known to avoid such a market that is completely unknown.
Crypto use exploded in the past years and bitcoin prices were soaring from $9,000 in 2020 to about $68,000 at their peak in 2021.
New traders downloaded apps that made it easy to buy crypto easily with a few tapings on their smartphones during the time of pandemic lockdowns. Some of the new traders continued active trading in and out of different cryptocurrencies.
Some of them believed that they were safe by parking their crypto holdings at companies that are offering a large amount of return policy.
According to the data collected from the JPMorgan Chase Institute in New York, there is a drastic change in the share of U.S. households that have transferred funds into a crypto-related account changed from 3% in 2020 to 13% in June 2022. It sounds like the rookie traders enter into the crypto in the last year.
At the time crypto prices soared, many financial companies introduced new services and products that attract everyday investors to add crypto to their future.
According to Chris Kline, co-founder of Bitcoin IRA the diminishing trust in the company has reduced the number of new investors entering the crypto.
Many investors transferred their money to crypto accounts after the prices shows their highest rate compared to the present status. It shows that they are at a loss.
The crypto traders said they are trying to hold on to cryptocurrencies. Some of the investors believed in crypto to bring a change in global finance.
Stephen Jones said he started buying cryptocurrencies at the time he was in college. After some wins, he had doubts over the past years. So he sold out of some positions. His marriage pushed him to take another closer look at his finances.
After all of this, he decided to cash out his holdings. In his words, FTX has opened his eyes. He was relieved that he is already dumped his crypto after he saw the FTX collapse.