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Crypto Losses Mount, Most Investors Underwater According to New Study

Crypto peaked a year ago — investors have lost more than $2 trillion since. Most retail investors using crypto exchange apps have lost money on Bitcoin, a new data study suggested.

About three-quarters of users are likely to have lost money on their investments in cryptocurrencies, according to data crunched by the Bank for International Settlements (BIS), which charted retail use of crypto exchange apps across 95 countries between 2015–22.

The study assumed that if each new user bought $100 of Bitcoin in the month of the first app download and in each subsequent month, 81% of users would have lost money.

It also showed that a rising Bitcoin price was followed by a jump in the entry of new users.

“We find that 73% of the users downloaded their app when the price of Bitcoin was above $20,000,” the report said.