On May 22, according to an annual survey released by the cryptocurrency exchange Independent Reserve, reported by Lianhe Zaobao, the awareness of cryptocurrency among Singaporeans reached a historic high of 94%. However, the actual ownership rate dropped from 40% last year to 29%. This contrast in data reveals a significant "temperature difference" between the popularization of awareness and actual participation in the current cryptocurrency industry.

When a large portion of a country's population knows what cryptocurrency is but chooses not to hold it, this is not a failure of awareness but rather a readjustment in trust and risk preference. Especially in a country like Singapore, which has a well-established rule of law and a highly mature financial system, this trend deserves serious interpretation.

In recent years, cryptocurrency has gradually moved from being a "geek concept" into the mainstream, particularly in crypto-friendly regions like Singapore, where the government has consistently voiced its stance on regulation and education. Cryptocurrency trading platforms and blockchain associations have also actively organized educational activities, making the increase in awareness an inevitable result.

But awareness does not equal participation.

Many people "know" about Bitcoin (BTC), but that does not mean they "believe" in Bitcoin, nor does it mean they are "willing to bear the corresponding risks."

After the explosive events of 2022 (the collapse of FTX, the crash of LUNA, and the liquidation of 3AC), global investors' confidence in crypto assets was generally severely impacted. Particularly in Singapore, several incidents related to FTX and LUNA affected local investors, making more people realize that the risks of crypto assets are not abstract but can lead to real financial losses.

Therefore, when awareness of cryptocurrency continues to rise while actual ownership rates decline, it is likely that users are "choosing restraint after understanding," reflecting a more mature investment attitude.

II. Dual Cooling of the Macroeconomic Environment and Risk Asset Sentiment

Another key background is that the tightening macro environment has led to a general decrease in risk appetite.

During the period from 2024 to 2025, global inflationary pressures remain, and although the U.S. interest rate hike cycle is gradually slowing, the high interest rate environment still makes "risk-free return" assets like bonds attractive. In contrast, due to high volatility and high uncertainty, the proportion of crypto assets in institutional and retail investors' asset allocations has generally decreased.

Especially in financial centers like Singapore, where high-net-worth individuals are concentrated, investors' preferences are more rational. In the context of high inflation and global uncertainty, many people choose to reduce their crypto positions and return to traditional assets with clear cash flows and valuations.

This is also reflected in the survey: although 29% of respondents still hold crypto assets, more people are choosing stablecoins (especially U.S. dollar stablecoins) as alternative holding methods, accounting for 46%. This indicates that even crypto investors are beginning to prefer "low volatility, high anchoring" forms of digital assets rather than traditional high-risk tokens.

III. Regulatory Uncertainty Keeps "Observers" in Place

Although the Singapore government is regarded globally as one of the more crypto-friendly regulatory countries, "friendly" does not mean "non-intervention."

Since 2022, the Monetary Authority of Singapore (MAS) has strengthened compliance requirements for crypto service providers and has repeatedly stated its opposition to viewing cryptocurrencies as "recommended assets" for retail investors. On one hand, this enhances institutional confidence in policy stability; on the other hand, for individual investors, especially "middle-class retail investors," this regulatory attitude sends a signal: the government does not encourage you to treat it as a speculative tool.

Regulation has not prohibited, but it has provided a "cautious attitude guide." This is highly significant for a society like Singapore, which is strongly influenced by government discourse. Many people may choose a strategy of "understanding but not acting" because of this.

IV. "Speculation" is No Longer Mainstream; Crypto Assets are Moving Towards a Value Selection Phase

The crypto asset market is undergoing a transition from "everyone chasing the rise" to "structural participation." The former "if you don't understand, you'll lose big" is gradually becoming "if you don't understand, it's best not to touch it."

This is also reflected in the data from Independent Reserve:

• Although the overall ownership rate has declined, 53% of holders plan to increase their holdings in the coming year;
• Among non-holders, 17% expressed a willingness to enter the market;
• 61% of investors prefer to hold coins directly rather than through derivative investment tools like ETFs.

This indicates that the majority leaving the market may simply be risk-averse, but the few remaining are more resolute and tend to truly understand the assets themselves rather than just looking at price fluctuations.

This structural layering is itself a sign of market maturity.

Conclusion: Singapore's Data Reflects the "Calm Reconstruction" of the Global Crypto Market

A 94% awareness rate indicates that the dissemination of the crypto industry has completed the "education phase"; a 29% ownership rate reminds us that trust needs to be repeatedly validated, and the consensus behind asset pricing is being reshaped.

This is not a "bubble burst," nor is it "user loss," but rather a rational filtering influenced by risk events, macroeconomics, and regulation.

Compared to the noise of users "FOMOing into the market," we may cherish this stage more: a market willing to understand, able to make judgments, and also willing to say "no" is a market truly moving towards maturity.

Related: Bitcoin (BTC) price targets $112,000, risk assets "ignore adverse unemployment news."

Original: “94% of People Understand Cryptocurrency, but Only 29% Still Hold: What Signals is the Calm in the Singapore Market Conveying?”

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