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High net worth (HNW) investors have remained steadfast in their confidence in cryptocurrencies, as the market continues its robust performance in the first half of 2023, according to a survey conducted by deVere Group, the financial advisory and asset management organization.
The poll reveals that an impressive 85% of deVere's HNW clients have either considered or are already investing in cryptocurrencies like Bitcoin this year, highlighting the sustained interest and resilience in the digital asset market.
Nigel Green, the chief executive and founder of deVere Group, emphasised the significant turnaround in the crypto market this year, despite the challenges faced in the previous year.
"The half-year crypto poll reveals that, despite the crypto market delivering its worst performance since 2018 last year, 2023 has seen a remarkable turnaround for digital currencies," he said.
Green acknowledged the adverse impact of the "crypto winter" in 2022, where a series of negative events resulted in financial losses and shattered investor confidence in cryptocurrencies.
Green further explained that the crypto market's resurgence in 2023 is notable given the increased oversight from regulatory bodies such as the US Securities and Exchange Commission (SEC) in the digital asset space.
He highlighted the impressive performance of Bitcoin, which has already gained 80% this year, putting it on track for its best annual performance since 2020.
Additionally, Ethereum prices have surged by 52% in 2023, further indicating the positive sentiment surrounding cryptocurrencies.
Despite the challenges faced by the crypto market and the conservative nature of the surveyed HNW group, Green highlighted that investors are seeking advice from financial advisors regarding cryptocurrencies.
He attributed the interest to the core values of Bitcoin, which are its digital, global, and borderless nature. Furthermore, Green pointed out the potential upside momentum due to global cooling inflation trends, which could improve the outlook for risk-on assets.
Green says the significance of HNW investors expressing strong interest in cryptocurrencies means they are likely to capitalise on the anticipated continued price rises of major digital currencies.
"If HNWs are continuing to express such huge interest in crypto, as market conditions steadily improve, they're going to be amongst the first to capitalize on the anticipated continued price rises of the major digital currencies," he noted.