German crypto investors are showing renewed optimism and confidence, a KPMG study reveals, following last year’s market challenges.
KPMG recently conducted a study with BTC-ECHO that surveyed about 2,400 private crypto investors in Germany, Austria, and Switzerland. The findings show a significant increase in crypto interest, with 54% of respondents committing more than 20% of their total assets to crypto investments.
Bitcoin recently reached a record high of $72k, leading to renewed hope for crypto investors. This was fueled by spot Bitcoin ETFs’ performance and anticipation of the Bitcoin halving.
Ripple CEO Brad Garlinghouse expects the crypto market to exceed $5 trillion by the end of the year.
Meanwhile, a significant portion of investors, about 67%, are demonstrating a strong commitment to digital assets, planning to hold onto their investments for a period ranging from three to five years.
However, individuals who are new to the market are exercising increased prudence. They are scrutinizing investment prospects with heightened vigilance and patience. As a result, service providers are obligated to make further endeavors in order to convert a prospective party into a customer.
Investors value security, deposit/withdrawal choices, and transaction costs while choosing crypto exchanges, as seen in 2023.
According to the report, 34% of investors believe their digital asset investments are “rather safe.” However, they continue to be most concerned about market manipulation, regulatory uncertainty, and financial crimes.
Compared to 2023, Bitcoin’s dominance in surveyed investor portfolios increased by 7%, maintaining its position at 91%. Solana has seen a significant 9% rise compared to 2023, trailing Ethereum in second place.
The German government is actively shaping cryptocurrency regulations to protect investors and stabilize the financial system. Since 2019, laws have allowed banks to handle and trade cryptocurrencies, with ongoing efforts to tighten rules for exchanges and ICOs.
Regulatory agencies like BaFin and the Federal Ministry of Finance enforce compliance, including strict KYC and AML guidelines to prevent fraud on crypto exchanges.
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