Bitcoin (BitcoinA new report from the Bank for International Settlements (BIS) suggests that investors are more likely to be drawn to the rising prices of cryptocurrencies than their dislike of banks and perceptions of their use as stores of value. Suggested.
“BIS Working Paper” Report It was published On November 14th, the central bank investigated the relationship between Bitcoin prices, cryptocurrency trading and retail adoption.
that is, Drivers of crypto adoption By download-time adoption and individual investors who use crypto trading app downloads as a proxy for user investment.
“Bitcoin’s rising price is associated with a significant increase in new users, i.e., the entry of new investors,” and that most retail investors “downloaded crypto apps when prices were high.” I found
BIS is Daily downloads of crypto exchange applications July to November 2021 sees a sharp increase in the Bitcoin price, with the Bitcoin price peaking between $55,000 and $60,000, about 1% above the November 2021 high of just over $69,000. It peaked a month ago.
He added that 40% of cryptocurrency app users are men under the age of 35, part of the most “risk-seeking” segment of the population.
“user [are] Rather than a distaste for traditional banks, a quest for a store of value, and a distrust of public institutions, Bitcoin is being gravitated to by its rising price. ”
“Bitcoin’s price remains the most important factor in controlling global uncertainty and volatility, which contradicts the explanation based on Bitcoin’s safe haven,” it added. .
BIS assumed application user buys bitcoin We estimated that up to 81% of users would lose money if they bought more than $20,000 in bitcoin once they downloaded the cryptocurrency app.
The BIS assumptions seem to correlate with data from blockchain analytics firm Glassnode, which saw just over half of Bitcoin addresses profitable on Nov. 14, hitting a two-year low. It was confirmed.
#bitcoin $BTC Address share of profit (7d MA) hits 2-year low of 51.881%
Show metrics:https://t.co/ik5IkrdoPk pic.twitter.com/boVDTqG8YL
— Glassnode Alerts (@glassnodealerts) November 14, 2022
The BIS said that as the price of bitcoin rose, small users bought it, and “the largest owner (the so-called ‘whale’ or ‘humpback’) sold it, making a profit at the expense of the small users.” Added analysis of blockchain data revealed from
Related: Blockchain Industry Turmoil Despite Strong Bitcoin Fundamentals: Report
It also records the geographic distribution of adoption of encryption apps, with Turkey, Singapore, the United States, and the United Kingdom each having the highest total downloads per 100,000 people between August 2015 and June 2022. I understand.
India and China are the lowest, with the latter having just 1,000 cryptocurrency app downloads per 100,000 population, BIS said: greater legal restrictions Cryptocurrency is hampering retail adoption in these countries.