Almost one third (30 per cent) of investors will not invest in cryptocurrency because they think they have left it too late, new research has found.
According to a new cryptocurrency report from Parliament Street think tank and ITI Capital, cryptocurrency investments are becoming increasingly mainstream.
29 per cent of those surveyed for the report said that they would never have considered investing in cryptocurrency before the most recent Bitcoin bull run, but now they would invest.
31 per cent of investors believe that the price of Bitcoin will reach £50,000 this year, while 18 per cent think that it will hit £100,000 by the end of 2021.
Furthermore, one quarter of all investors surveyed revealed that they would have made more than £1m in profit if they had moved all of their assets into Bitcoin at the start of 2020.
The report also found that 37 per cent of investors believe that traditional assets such as stocks and shares are too risky to invest in at the moment, which has made cryptocurrency more attractive to risk-aware investors.
However, 55 per cent of those surveyed said that they have no plans at all to invest in cryptocurrency this year, while 52 per cent said that they are still more likely to invest in traditional assets such as gold, stocks or shares, than into cryptocurrency.
“Many traditional investors are still cautious of cryptocurrency’s volatility and have been cautious about adding it to their investment portfolios,” said Stephen Kelso, head of capital markets at ITI Capital.
“This digital asset market ‘bull run’ is different from the previous crypto peak back in December 2017 because its price has this time been driven by a confluence of factors, including the rate of change of central bank balance-sheet expansions and improved information and understanding of macro conditions and how market forces are changing after a 37 year bull-market in bonds.
“The biggest change however is that now institutional investors, gatekeepers and corporate CFOs now need to be able to point to the most fiduciary-responsible way to access Bitcoin.”
Kelso added that he expects interest in digital currencies “to continue its upward trajectory as more investors look to diversify their portfolios.”