Europeans invest more in crypto, Americans less

Profit-taking this week leads both the Bitcoin and Ethereum prices below psychological thresholds. Bitcoin dipped below the $30,000 mark and seems to be struggling to get over that cliff again. Ethereum looked very good after the Shanghai upgrade but is now fighting to recover the $2,000 mark.

A very striking fact in the profit-taking to see was that institutional investors in the US are exiting Bitcoin and Ethereum, while Europeans (and especially Germans) are returning to crypto this year.

Optimism in Germany

CoinShares analyst James Butterfill said:

Regionally, the profit-taking was almost solely from North America, which saw outflows totaling $54 million. This was offset by the continued optimistic sentiment in Germany which saw inflows totalling $29 million.

The optimism of the Germans also stems from the country’s very friendly tax regime for digital currencies. Bitcoin and Ethereum are widely accepted in Germany as a long-term investment.

“Bitcoin” projected on the Seat of the ECB in Frankfurt. Another memorable moment in monetary history. Will be avoided by TV news in Europe. Still happened. 🦇 pic.twitter.com/gdVL5lr6kh

— Tuur Demeester (@TuurDemeester) March 30, 2023

At the end of March, the Bitcoin logo was even projected by activists on the main building of the European Central Bank in Frankfurt.

Bermuda

Meanwhile, Americans, especially policymakers, are becoming increasingly aggressive towards crypto. The news that Coinbase, the largest crypto platform in the US, is considering relocating to Bermuda due to these new rules has sparked a lot of negativity from key investors.

The Billionaire investor, Chamath Palihapitiya says that crypto is dead in America 🇺🇸 🧐 pic.twitter.com/lKKM8UTgVA

— Crypto Crib (@Crypto_Crib_) April 25, 2023

Tech billionaire Chamath Palihapitiya, one of the early investors in Facebook, said on a well-known podcast earlier this week:

Crypto is dead in America. I mean now you have Gensler even blaming the banking crisis on crypto, so the United States authorities have firmly pointed their guns at crypto.

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