Bitcoin’s price remains the most critical factor in crypto adoption and growing numbers of retail investors.
Analysts at the Bank for International Settlements (BIS) published a research report analyzing the main motives for Bitcoin and crypto adoption. The experts found a direct correlation between the increase in BTC’s value, the rise in new retail investors, and the overall volume of crypto market trading.
The analysts looked at how many crypto trading apps were downloaded as a user activity index. It turned out that when BTC rose, so did the number of downloads. For example, downloads increased steadily from July to November 2021, reaching their peak values when Bitcoin ranged from $55,000 to $60,000.
Between 2015 and 2022, the maximum number of cryptocurrency trading app downloads was from Turkey, Singapore, the United States, and the United Kingdom, while India and China had the lowest.
The researchers concluded that many popular beliefs about the reasons behind users’ attraction to crypto are wrong, including:
- seeking funds for savings;
- a lack of trust in the traditional banking system;
- distrust toward government institutions.
Other interesting findings from the study include:
- 40% of users of crypto trading apps were men under 35;
- small investors bought BTC as the price rose, while large investors sold it, locking in profits;
- 81% of investors who bought BTC at more than $20,000 suffered losses.
These data correlate with analysts from Glassnode, who stated that the number of profitable BTC addresses reached a two-year low and is now just over half of all addresses in the Bitcoin network.
The Bank for International Settlements is actively interested in the cryptocurrency market and takes part in many international CBDC projects, including Project Icebreaker, Project Mariana, Project Cedar, and others.