Against the backdrop of the upcoming Bitcoin halving event in April, 48% of Singapore crypto investors will continue to double down on Bitcoin over the next 12 months, according to the 2024 Independent Reserve Cryptocurrency Index (IRCI).
Those who hold more than 50% of their portfolio in crypto are the most likely to increase their Bitcoin holdings, the study found.
Fueled by recent industry developments such as the approval of spot Bitcoin exchange-traded funds (ETFs) in the US, 39% of Singaporeans now view Bitcoin more favourably. More than half (51%) are aware of the US Securities and Exchange Commission's approval of spot Bitcoin ETFs, and 33% are open to investing through an overseas offering given that the product is not available to retail investors in Singapore.
“The long-awaited arrival of the spot Bitcoin ETFs has supercharged the demand side for Bitcoin as billions of dollars from institutions has poured in. The trust and understanding of Bitcoin have grown significantly over the past few years, and more Singaporeans are increasing their allocations,” says Independent Reserve Singapore CEO Lasanka Perera.
That said, 75% of Singaporeans prefer investing directly in Bitcoin through a cryptocurrency exchange rather than through a Bitcoin ETF offering due to lower fees and wider range of trading options.
Singapore scored 56 on the IRCI this year — up one point from 2023 — reflecting a positive shift in public perception towards cryptocurrency. While overall awareness and ownership might have dipped slightly, other key metrics indicate a growing sense of confidence and optimism in the market.
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This year, the IRCI found that Singaporean investors are more sophisticated on various fronts. Majority (52%) have been in the market for more than three years and hold increasingly diverse portfolios, as investors are increasingly holding six or more different cryptocurrencies.
Despite the ups and downs in market cycles, Singapore crypto investors are more certain about their plans for the next 12 months. Over half (53%) are going to invest more into their existing portfolio, while 45% indicated a desire to diversify into new projects.
64% of crypto owners have reported making money, up by 9 percentage points from last year, surpassing profit levels of the last two years and inching closer to the 74% who reported profits at the 2021 bull market peak. Only 10% lost money this year compared to 26% in 2023.
See also: Bitcoin retreats from US$100,000 in worst spell since Trump’s win
Despite being impacted by the rising interest rates and cost-of-living, almost a third or 29% of Singaporeans would opt to hold or increase their crypto allocation. Another 37% who are not impacted by rising costs also plan to hold or add their crypto.
Among those surveyed, investors above 55 years old are very bullish — 25% will hold or increase their crypto allocations despite cost-of-living pressures. Their financial stability and reduced financial obligations may be possible causes for their ability and confidence to hold crypto and leverage its potential growth.
As Bitcoin price optimism returns, Singaporeans’ outlook for Bitcoin’s price is positive. Almost half (48%) believe Bitcoin will be worth between $50,000 and $100,000 by 2030. 31% of those already invested in crypto are confident that Bitcoin will hit higher than $100,000.
“All eyes will be on Bitcoin in the coming few weeks. With the halving on the horizon, the supply of newly mined Bitcoin will reach an all-time low. This sharp decline in the supply will most likely see Bitcoin’s price break all-time highs, many times throughout the year.
“Ultimately, this year’s IRCI reveals that Singaporeans are just as excited about Bitcoin as I am. Bitcoin is seen as a digital gold, but superior to gold in many ways — it is portable, divisible, scarce, verifiable and can move over the internet 24/7,” says Perera.
Currently in its fourth year, the IRCI is an annual survey of over 1,500 Singapore residents by independent consumer insights provider Toluna. It is a cross-sectional and unbiased sample of everyday Singapore residents, designed to represent the nation as a whole. This year’s survey was done in February 2024.
