{"id":17930,"date":"2023-02-21T22:42:36","date_gmt":"2023-02-21T22:42:36","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/most-retail-crypto-investors-lost-money-over-the-last-7-years-according-to-bis-analysis-bitcoin-news\/"},"modified":"2023-02-21T22:42:36","modified_gmt":"2023-02-21T22:42:36","slug":"most-retail-crypto-investors-lost-money-over-the-last-7-years-according-to-bis-analysis-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/most-retail-crypto-investors-lost-money-over-the-last-7-years-according-to-bis-analysis-bitcoin-news\/","title":{"rendered":"Most Retail Crypto Investors Lost Money Over the Last 7 Years, According to BIS Analysis \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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According to data from the Bank for International Settlements (BIS), published in the latest BIS Bulletin No. 69, researchers assessed that, on average, most users lost money on their investments over the past seven years. Onchain data, metrics from exchanges, and cryptocurrency application download statistics gathered by BIS researchers suggest that most median retail crypto investors lost money from August 2015 to the end of 2022.<\/strong><\/p>\n

BIS Report Shows Majority of Retail Bitcoin Investors Lost Money Over the Last Seven Years<\/h2>\n

After publishing recommendations<\/a> from economists at the Bank for International Settlements (BIS) regarding three policies for global regulators, BIS published a report that explores \u201ccrypto shocks and retail losses.\u201d The report<\/a> initially covers the Terra\/Luna collapse<\/a> and the FTX bankruptcy<\/a>, during which the researchers observed a significant increase in retail trading activity.<\/p>\n

At that time, BIS researchers noted that \u201clarge and sophisticated investors\u201d were selling, while \u201csmaller retail investors\u201d were buying. In the section titled \u201cIn Stormy Seas, \u2018the Whales Eat the Krill,’\u201d it is detailed that \u201ca striking pattern during both episodes was that trading activity on the three major crypto trading platforms increased markedly.\u201d<\/p>\n

\"Most<\/p>\n

BIS researchers note that \u201clarger investors probably cashed out at the expense of smaller holders.\u201d The report adds that whales sold a significant portion of bitcoin (BTC)<\/a> in the days following the initial shocks from Terra\/Luna and the FTX collapse. \u201cMedium-sized holders, and even more so small holders (krill), increased their holdings of bitcoin,\u201d the BIS researchers explain.<\/p>\n

In the second part of the report, BIS calculated metrics from onchain data, overall application download statistics, and exchange data to assess whether most median retail cryptocurrency investors profited or lost money over the last seven years. The data was collected from August 2015 to mid-December 2022, in a section titled \u201cRetail Investors Have Chased Prices, and Most Have Lost Money.\u201d<\/p>\n

BIS conducted a series of simulations, such as dollar-cost averaging $100 in BTC<\/a> per month, and concluded that over the seven-year period, \u201ca majority of investors probably lost money on their bitcoin investment\u201d in nearly all economies in the researcher\u2019s sample. Despite the activity stemming from the Terra\/Luna fiasco, the FTX bankruptcy, and the statistics indicating that median retail cryptocurrency investors lost money over the last seven years, BIS researchers insist that \u201ccrypto crashes have little impact on broader financial conditions.\u201d<\/p>\n

The retail losses and patterns still suggest to BIS researchers that there is a need for \u201cbetter investor protection in the crypto space.\u201d While the analysis shows there was a \u201csteep decline in the size of the crypto sector,\u201d it has \u201cnot had repercussions for the wider financial system so far.\u201d However, BIS researchers claim that if the crypto economy were more \u201cintertwined with the real economy,\u201d crypto shocks would have far greater impacts.<\/p>\n

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Analysis<\/a>, Bank for International Settlements<\/a>, BIS<\/a>, BIS Bulletin<\/a>, BIS report<\/a>, BIS research<\/a>, BIS researchers<\/a>, BIS study<\/a>, Bitcoin<\/a>, crypto sector<\/a>, crypto shocks<\/a>, crypto space<\/a>, crypto trading platforms<\/a>, cryptocurrency application<\/a>, cryptocurrency market<\/a>, Digital Assets<\/a>, economists<\/a>, Economy<\/a>, financial conditions<\/a>, financial stability<\/a>, FTX Bankruptcy<\/a>, global regulators<\/a>, Investments<\/a>, investor protection<\/a>, larger investors<\/a>, market fluctuations<\/a>, Onchain data<\/a>, retail crypto investors<\/a>, retail losses<\/a>, smaller holders<\/a>, Terra\/Luna collapse<\/a>, trading activity<\/a>, wider financial system<\/a><\/div>\n<\/div>\n

What do you think about the BIS report about crypto shocks and retail losses? Let us know your thoughts in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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