The BIS (Bank for International Settlements) is a Swiss-based bank owned by 63 national central financial institutions that recently revealed a new survey based on Bitcoin.
Primarily, the BIS offers various banking services to several national central banks. Also, it creates a platform for regulatory policies and monetary discussions. The organization also provides analysis based on the economy of nations.
BRI member central financial institutions have elected about 18 directors to run its operations. The central member financial institutions are made up of the central bank governors of France, Belgium, the United States, Germany, the United Kingdom and Italy. They are the permanent administrators of the council.
They may also collectively appoint another director from one of the member central banks. Finally, the governors of the other major member financial institutions must elect the remaining 11 directors from the full board.
The BRI study
Given the continued movement of the crypto market, it’s no surprise that many investors are at a loss. Therefore, the BIS has decided to take a look at the situation of crypto investors regarding the current state of the crypto market.
Its findings revealed that around a third of BTC retail investors are currently at a loss. The study was based on the activities of retail investors on different exchange apps.
According to investigation, most exchange app downloads occurred while BTC was still above $20,000. The study covered data from 2015 to 2022, covering around 95 countries.
The survey showed that retail investors bought an average of $100 worth of BTC per month. According to this data, approximately 81% of retail investors are currently at a loss.
This event raises concerns about venturing into crypto investments. The BRI considers the crypto ecosystem to be one of the riskiest investments for anyone. Moreover, its implementation may not do any good for the economy as it currently stands.
Bitcoin still attracts retail investors
Contrary to BIS belief, investors always show more interest in Bitcoin regardless of the current situation. The BIS, however, noted that digital currencies are quite volatile. Therefore, if potential investors ventured there, they could also suffer losses.
Moreover, these digital assets are still not recognized as global means of payment. This fact also indicates that cryptocurrencies have no government support.
The Bank for International Settlements also reported that despite Bitcoin’s downfall, investors are still transacting business with the token.
About 75% of the price of BTC is lost within a year, and that’s not all. Given the crash of FTX and 3AC, the BIS noted that investor confidence in crypto investments should be somewhat fragile. As of this writing, Bitcoin is trading at $16,586.
Featured image from Pixabay, chart from TradingView.com