The number of Canadian cryptocurrency users has dropped in 2023 due to bear market fears and wider macroeconomic factors, a survey conducted by the Ontario Securities Commission (OSC) shows. It revealed that ownership of digital assets has gone down from 13% in 2022 to 10% this year. Experts attribute this to the falling prices caused by the bear market and tightening regulations.
The survey also showed that the view that digital assets would not play a major role in the economy has become more prevalent. Last year, 38% of Canadians believed that assets would be instrumental in the future of finance, but now only 26% do so. Nevertheless, 34% still think the tide will turn in the future, while 49% of users who held this belief in 2022 remain optimistic.
Interestingly, the survey uncovered an interesting trend – while the average number of users has decreased, the average holdings per user has increased, with the mean market value rising to $82,992 from $52,975 in 2022.
The survey also revealed that 77% of Canadians regret having exposure to digital assets, which is up from 68% last year. Most of them think that their investments are not performing as they had anticipated.
However, over 50% of Canadians are well informed about the crypto market. This is often associated with increased adoption. But, a report by the Bank of Canada shows that the country’s Central Bank Digital Currency (CBDC) project is not widely anticipated, as users prefer traditional payment options.
The 2021 bull market led to a surge in adoption as several assets climbed to new all-time highs and institutional investors showed a renewed interest in the market. But the following year saw huge market crashes, wiping billions off the market cap, resulting in lower investor confidence, as traders recorded losses and regulators clamping down on most sectors of the market. Prices of top assets, including Bitcoin (BTC) and Ethereum (ETH) dropped by over 55%.
This year, prices have seen a major uptick with several assets rebounding over 100%. However, many users are still in losses due to investing in 2021 at high prices.
