Crypto Ownership in Singapore Declines, but Bitcoin Set for a Comeback as Investors Eye Bigger Gains in the Next Year

Exchange Gemini has reported that cryptocurrency ownership in Singapore has declined in recent years. The global crypto adoption study, conducted between May 23 and June 28, surveyed 1,200 Singapore residents aged 18 to 75, revealing that 26% now own digital assets.

Despite initial skepticism, it is also reported that 48% of Singaporean crypto investors have said that they will be doubling down on Bitcoin in the next 12 months.

Increase adoption amonst Gen Z and Boomers but dip amonst millennials

A study by crypto exchange Independent Reserve Singapore, we have found that although there has been a slight increase among Gen Zs and boomers, 2024 has seen a steep decline in crypto users among Millennials.

Despite the growing interest in Bitcoin, Singapore's general awareness of crypto has dipped slightly to 89% in 2024 from 91% a year ago. Still, Singapore is ahead of many other countries in terms of awareness and adoption.

But while crypto ownership has dipped in Singapore, sell-offs have slowed over the past six months, coinciding with improved market conditions. Price volatility, however, was one of the most common reasons for the earlier sell-offs, with 30% of former crypto holders in Singapore stating they sold their assets due to losses.

Studies have shown that 64% of crypto users have reported making money, which was a 9% improvement from last year. Only 10% said that they have lost money this year compared to 26% in 2023, showing an improving crypto landscape in Singapore.

Bitcoin to see rebound next year

Despite the dip in ownership, investor sentiment in Singapore remains optimistic. Only 10% of respondents sold their crypto assets in the last six months, a significant decrease from the 49% who sold more than a year ago.

The study by the 2024 Independent Reserve Cryptocurrency Index showed that almost half of Singaporeans surveyed still hold an optimistic view on the future of bitcoin. In the survey, they have expressed that they will continue to double down on bitcoin over the next 12 months.

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.

So it seems that the majority of crypto owners still follow a buy-and-hold strategy, aiming for long-term growth. In Singapore, 46% of respondents reported actively buying and selling crypto for profits. Additionally, 41% of Singaporeans surveyed said they bought cryptocurrency as a hedge against inflation, a higher percentage than in many other developed countries all around the world.

Regulation hindering crypto adoption

Compared to 2022, more respondents in 2024 from the US (38%), UK (38%), and Singapore (49%) identified regulatory uncertainty as a barrier to crypto investment. Interestingly, the opposite was true in France, where only 32% saw regulation as a deterrent.

In fact, Singapore is perceived by many countries as the model nation when it comes to adopting a balanced regulatory and legal framework for cryptocurrencies and entities dealing with them. For example, Bitcoin and Ether are both recognized as cryptocurrencies by the country's main regulatory body, the Monetary Authority of Singapore (MAS).

Singapore also has put in place regulations like the PSN02 or crypto Travel Rule to address the money laundering and terror financing risk that is so commonly associated with crypto assets.