More than half of investors with exposure to cryptocurrencies are planning to snap up more digital assets over the next 12 months despite recent volatility in the market, a new report suggests.
Over the next year, 56 per cent of crypto investors plan to buy more, compared with 31 per cent who plan to retain or reduce their exposure, according to research by international communications agency Citigate Dewe Rogerson seen by City AM.
Only eight per cent plan to sell all of their cryptocurrency holdings, the research found.
Cryptocurrency prices have swung back and forth in recent weeks. Bitcoin, the number one digital currency, dropped below $9,000 yesterday after climbing past $11,500 early last week, according to Coindesk's aggregate index.
But a majority of financial professionals (54 per cent) told Citigate they were optimistic, expecting crypto valuations to rise over the next 12 months supported by increased regulation and adoption. Meanwhile, 32 per cent anticipated a drop.
Between now and 2021, 32 per cent expect there to be a "dramatic" increase in valuations.
"At the start of the year, the market capitalisation for cryptocurrencies was around $800bn (£577bn), but by 2021 over half of the financial professionals (59 per cent) we interviewed expect it to be over $1 trillion, while 15 per cent anticipate it to be more than $2 trillion," said Phil Anderson, executive director at Citigate Dewe Rogerson.