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Cryptocurrencies Are on the Rise as Investors Sell Their Stocks

A recent survey conducted by CivicScience shows that investors are selling their stocks to invest in cryptocurrencies. About 7% of respondents say they have sold stocks or bonds to buy cryptocurrencies. The results represent a huge shift from data collected in June 2021. At that time, the preference for stocks was significantly higher at 90%. Only 10% said they would invest in cryptocurrencies.

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The interest in cryptocurrencies is growing. Now, money is starting to flow from the stock market into digital assets. 23% of respondents to a U.S. survey said they – or someone they know – have sold stocks or bonds to invest in cryptocurrencies instead. The data was collected by polling and data analytics firm CivicScience.

The online survey was conducted between November 29th and December 6th. It solicited responses from 1,997 US citizens over the age of 18. It found that 76% of people are still more likely to invest in traditional stocks than in crypto. 24% said they were more likely to invest in cryptocurrencies.

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The interest in cryptocurrencies is on the rise

The results represent a huge shift from data collected in June 2021. At that time, the preference for stocks was significantly higher at 90%. Only 10% said they would invest in cryptocurrencies.

CivicScience wrote in the report on the survey’s findings, “Recently, some investors have started selling some of their equity assets to buy cryptocurrencies. We also see that they are serious investors, much more than casual investors.”

About 7% of respondents say they have sold stocks or bonds to buy cryptocurrencies, and 16% know someone who has done something similar. While the remaining 77% deny having made such investment decisions or knowing anyone who has.

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Of those who sold stocks to buy cryptocurrencies, 66% kept their contribution below a quarter of their total assets. This suggests that traditional stocks are still seen as a safer option despite the growing popularity of digital currencies.

Experienced investors are going all-in

“The data shows that over a fifth of investors has sold more than half of their equity assets to buy cryptocurrencies – a shockingly high number. And when we dive deeper into the data, we see that this number is largely driven by those who follow financial markets and the economy very closely.”

The firm concluded that “dedicated investors know something the general public doesn’t about cryptocurrencies. Or perhaps they are simply more risk-tolerant than their less financially oriented counterparts.”

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First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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J. Frank Sigerson is a business and financial journalist primarily covering crypto, cannabis, crowdfunding, technology, and marketing. He also writes about the movers and shakers in the stock market, especially in biotech, healthcare, mining, and blockchain. In the past, he has shared his thoughts on IT and design, social media, pop culture, food and wine, TV, film, and music. His works have been published in Investing.com, Equities.com, Seeking Alpha, Mogul, Small Cap Network, CNN, Technology.org, among others.