The major crypto debacles of 2022 caused a spike in retail crypto trading, new data from the Bank for International Settlements suggests. However, the data suggests that large investors sold their assets at the expense of smaller investors attempting to diversify their assets following moments of crisis.
An analysis of retail investor returns on bitcoin for an approximately seven-year period starting in 2015 found that the median retail investor lost about half their investment by Dec. 2022, despite the major jump in price that occurred from 2015 to 2021. The data is based on crypto exchange app activity and downloads from August 2015 to mid-December 2022 in 95 countries, as well as on-chain data.
The price of the original cryptocurrency led to spikes in users across platforms, the study found: In the time between August 2015 and November 2021, when bitcoin’s price peaked at $69,000, the global average daily active users bounced from 100,000 to more than 30 million.
After the collapse of Terra and Luna in May, and the collapse of the FTT token and exchange FTX, bitcoin, ether and other assets fell by more than 20% within a few days.
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