German Crypto Investments Soaring as Bitcoin Halving Approaches, Reports KPMG
A recent study conducted by KPMG has revealed that German investors are showing a renewed interest in the cryptocurrency market. This surge in investment comes after a challenging year for the sector and just before the anticipated Bitcoin halving event in mid-April 2024.
The study, which surveyed around 2,400 private crypto investors in Germany, Austria, and Switzerland, provides insight into the changing investment behaviors and attitudes in the DACH region. The findings indicate a significant increase in crypto investments, with 54% of respondents allocating more than 20% of their total investments to digital assets.
Interestingly, a specific group of investors who allocate over half of their assets to cryptocurrencies are committed to supporting the industry for the next 3 to 5 years.
The report also highlights a shift towards more cautious investment practices. New investors are now conducting thorough evaluations before investing, which puts pressure on crypto service providers to enhance their efforts in converting registered interests into active investments. The gap between registration and active participation underscores this trend.
When selecting crypto exchanges, security concerns remain the top priority for 82% of investors. Deposit and withdrawal options, as well as transaction costs, are also important considerations for 65% and 62% of respondents, respectively.
Although 34% of those surveyed consider their crypto investments relatively safe, the majority still express concerns about market manipulation, regulatory changes, and financial crime.
Bitcoin continues to be the preferred choice for investors, held by 91% of respondents, followed closely by Ethereum at 78%. Solana has experienced an increase in investor interest, rising by 9% compared to last year, solidifying its position among the top digital assets in the region.
In the broader market context, the recent approval of Bitcoin spot ETFs by the U.S. Securities and Exchange Commission has attracted significant capital inflows. Since their introduction, Bitcoin ETFs have accumulated $56.2 billion.
However, spot Bitcoin ETFs saw a net outflow of $55 million on Friday, April 12, with a total outflow of $298.4 million in the past week alone. Analysts believe that these withdrawals may be a result of investors taking profits ahead of the halving, which is often followed by reinvestment after a market dip.
The upcoming Bitcoin halving, which reduces the new supply of Bitcoin, is typically seen as a precursor to a bull market, increasing expectations of higher demand as the cryptocurrency sector continues to grow.
“With the decrease in new supply of Bitcoin, we expect demand to rise, especially as the crypto industry expands. Additionally, as other cryptocurrencies, particularly those in the AI and gaming sectors, show promising growth, a bullish trend seems inevitable,” said Maciej Burno, CBDO of Reality Metaverse, in an interview with Crypto.news.
