Bitcoin has seen a raft of sell-offs in recent weeks – the cryptocurrency has slipped in value to $85,800, losing some 21 per cent since the beginning of the month.
This is down some 32 per cent since it hit its all time high of almost $126,300 at the start of October 2025, and is now at its lowest point since mid-April.
Chris Beauchamp, chief market analyst at IG, said: ‘This is the most sustained period of crypto weakness we’ve seen since the beginning of the year.
‘For a market that is capable of doubling in 12 months, such sharp corrections are to be expected.’
With such a big correction, some speculators could see it as a buy-in opportunity with data showing that crypto like bitcoin has become an inflation-hedge for some.
A large chunk of crypto investors, some 46 per cent, say it forms only a small part of their portfolio
More than a fifth of crypto investors – some 22 per cent – say beating inflation is the main reason they invest in cryptocurrencies, according to research by Bitpanda, with 18 per cent considering crypto investments due to potential changes to traditional products like Isas.
Almost a quarter say they see crypto as a legitimate long-term investment, with many investing in crypto alongside other assets like stocks and shares, savings and pensions.
In fact, a majority of crypto investors, 51 per cent, say they invest in the digital assets in order to build long term wealth, as opposed to short term gains, according to figures from investment platform IG.
In comparison, just 27 per cent of those who own crypto say they do so to make short-term gains.
On average, investors hold crypto for 54 months, IG said, with 31 holding it for more than five years and 17 per cent holding it for more than 10.
Bitcoin, the world’s largest and most popular cryptocurrency, had grown significantly since the election of Donald Trump, and over the past five years is up almost 400 per cent.
But recent wobbles highlight its volatility. Pantelis Kotopoulos, UK country lead at Bitpanda, said: ‘Crypto experiences market volatility and investors should be aware of this.
As a long-term investment, Kotopoulous says investors need to account for ‘the possibility of sudden changes in highs and lows.’
He adds: ‘UK investors are becoming interested in crypto as coins like bitcoin have hit significant highs this year, often outpacing traditional markets.
‘Added to this, the growing support from big institutions has also made crypto increasingly recognised as a longer-term investment.’
Beauchamp added: ‘Those who bought above $100,000 will feel very differently to those who bought at $50,000, but like all markets, crypto prices go up and down.
‘It has been weeks of poor performance for the asset class, but set against investment horizons of years, such periods become much less significant.’
As many as a third, 33 per cent, say their crypto holdings are intended to support their retirement saving, while 18 per cent want to use crypto for a house deposit, IG said.
Beauchamp said: ‘Crypto has grown up, and so have the investors that want exposure to it.
‘The astronomical percentage gains may be a thing of the past, and with greatly-increased institutional participation the stomach-churning declines are likely to be reduced too.
‘Crypto has become part of the financial landscape, and has become a crucial part of portfolios across the globe. No longer the speculative upstart of the financial markets, its place now seems assured.’
Some 6.5million Britons already own some cryptocurrency, and one in seven are reportedly considering investing in the digital tokens.
Crypto owners are five times more likely to describe themselves as cautious and risk averse where possible, than as being comfortable risking large losses in the hope of high returns, IG said.
A large chunk of crypto investors, some 46 per cent, say it forms only a small part of their portfolio, while 33 per cent say it is a significant part.
Still, some 6 per cent say they are solely invested in cryptocurrency.
Typically, experts suggest a crypto allocation of between 1 and 5 per cent, with 3 per cent often pegged as the ideal allocation.
Beauchamp said: ‘Bitcoin is here to stay, as the wave of funds providing access have proved.
‘With this has come a recognition that it is now an asset class and not just a flash in the pan.
‘Most of the new holders look at it as part of a portfolio, rather than the “all in” view of initial participants.’
Historically, cryptocurrencies have low correlation with traditional assets like stocks and bonds, so can be a useful way to diversify portfolios.
Some 35 per cent of people say they think investing in crypto will help them to diversify their portfolios, according to Bitpanda.
Kotopoulos said: ‘People are exploring it alongside more traditional options, not to replace them, but to diversify their financial position and navigate an increasingly volatile economic environment.
‘That shift is being driven by education, access, and ambition for their financial future.’
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