Rising Number Of Investors Sell Stocks and Bonds To Buy Crypto
According to statistics collected by public opinion polling and data analysis firm CivicScience, money from the stock market is starting to rotate into crypto, with 23 percent of respondents to a US poll saying they or someone they know has sold stocks or bonds to invest in crypto.
Between November 29 and December 6, 2021, an online opinion survey collected 1,997 answers weighted by the composition of the US population aged 18 and up, and found that 76 percent of respondents said they are more inclined to invest in traditional equities than cryptocurrency (24%).
This is a significant change from June 2021, when the reported preference for equities was significantly larger, at 90%, while the desire for investing in cryptocurrency was much smaller, at 10%.
“More recently, in fact, some investors have begun selling off some of their stock assets to purchase cryptocurrency,” CivicScience said. “And when we cross this information against the kind of market observer, we see that it’s serious investors that are swapping out their assets, much more so than casual ones.”
7 percent of respondents claim to have sold stocks or bonds to acquire cryptocurrency, and 16 percent claim to know someone who has done so, with the other 77 percent denying making such decisions or knowing someone who has.
According to the business, 66 percent of individuals who have sold at least some stock to acquire crypto have kept the amount under a quarter of their overall holdings.
CivicScience’s “data shows that over one-fifth of investors have sold more than half of their stock assets in order to buy cryptocurrency – a shockingly significant number. And diving deeper into the data, we see this number is largely driven by those who very closely follow financial markets and the economy.”
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The firm adds that “committed investors may know something about cryptocurrencies that the broader public does not, or perhaps they are simply more risk-tolerant than their less financially minded rivals.”