Singapore’s crypto ownership declines as investors cash out amid market volatility

[SINGAPORE] Crypto ownership in Singapore experienced a decline in 2025, as investors sold off their holdings to capitalize on record-high prices seen in recent months. However, not all investors made a profit, according to a new survey released on May 21.

The decrease in crypto ownership was also attributed to older investors who opted to divest some or all of their crypto holdings in an effort to mitigate risks amid ongoing macroeconomic uncertainties.

This drop in adoption comes amid mounting global regulatory scrutiny, with the Monetary Authority of Singapore (MAS) tightening regulations on retail crypto trading. In March 2025, MAS introduced stricter suitability assessments for crypto platforms, requiring them to assess investors' risk awareness before permitting trades. This regulatory shift is believed to have prompted a more cautious approach among Singaporean investors, particularly those with lower risk tolerance.

The survey, which polled 1,500 Singapore residents aged 18 and above, found that only 29% now own cryptocurrency, a significant drop from 40% a year ago.

Bitcoin hit a record high on January 20, surpassing US$109,000 (S$140,600) on the same day that US President Donald Trump was inaugurated for a second term and signaled plans to boost the crypto sector. The surge in prices during early 2025 was partially fueled by institutional adoption, with major asset managers launching Bitcoin-backed exchange-traded funds (ETFs). However, the rally proved short-lived, as profit-taking and concerns over rising interest rates and geopolitical tensions led to a 20% correction in Bitcoin’s price by April. This volatility likely deterred retail investors from holding onto their crypto for the long term.

The poll revealed that 49% of crypto investors had sold part or all of their holdings in the past year, with 67% of that group reporting a profit on their sales. Bitcoin and Ethereum remained the most popular assets, with 68% of crypto investors owning Bitcoin and 48% holding Ethereum, according to the survey conducted in February by crypto exchange Independent Reserve Singapore.

Lasanka Perera, CEO of Independent Reserve Singapore, noted that the sentiment surrounding Bitcoin has shifted towards long-term value rather than chasing trends or hype, which had characterized past cycles.

Despite the overall decline in ownership, younger investors, especially those aged 26 to 35, are increasingly entering the crypto market, likely attracted by the potential for high returns and the growing integration of blockchain technology in industries like fintech and gaming. This shift in demographics suggests that while older investors are stepping back, a new generation of digital-native traders may continue to drive the market's evolution.

The survey also found that 59% of those who profited from crypto are likely to reinvest in the next 12 months, while only 45% of those who broke even would consider re-entering the market, and just 25% of those who lost money would be likely to try again.

Portfolio diversification remains the primary motivation for crypto investment, with 48% of investors citing it as their reason for investing, although this is down from 52% in the 2024 survey. Additionally, 42% of crypto investors view digital currency as an investment tool, while 38% aim to trade for profits. Perera commented, “We’re seeing the market mature, with investors becoming more focused and selective in their decision-making process.”

When it comes to investment amounts, 41% of investors purchase crypto when the market dips or with spare cash, putting in between S$1 to S$100; 24% invest between S$101 to S$500; and 14% put in between S$501 to S$1,000. Those investing over S$1,000 make up 21%.

In terms of demographics, 27% of crypto holders in 2025 are aged 26 to 35, up from 25% in 2024, while 24% are aged 36 to 45, a slight increase from 23% the previous year. The share of holders aged 18 to 25 rose to 18%, up from 15% in 2024, while only 10% are over 55, a significant drop from 24% in 2024.

Notably, 46% of those over 55 had sold part or all of their crypto holdings in the past year to reduce risk in the face of macroeconomic uncertainties, according to Independent Reserve.

This retreat by older investors highlights a broader trend of risk aversion amid uncertain economic conditions. With concerns over inflation and higher yields from traditional markets, some investors are reallocating funds to safer assets such as bonds or dividend-paying stocks, underscoring the challenge crypto faces in establishing itself as a mainstream investment amid fluctuating market sentiment.

The survey also found that Singaporeans are taking a more defensive investment approach, with 49% of respondents holding cash in savings or fixed deposits, up from 42% in 2024.

Meanwhile, stablecoins—cryptocurrencies pegged to assets like fiat currency or gold—are gaining traction. About 83% of stablecoin holders own those pegged to the US dollar, while 20% hold stablecoins pegged to the Singapore dollar. The survey found that around 50% of stablecoin holders use them for transactions such as subscriptions, payments for goods and services, or overseas transfers.