Fed Study Shows Stagnation in Cryptocurrency Ownership Despite Market Recovery
Date: 2024-09-10 Author: Henry Casey Categories: CRYPTO PAYMENTS
A recent study by the US Federal Reserve found that despite a strong market recovery, cryptocurrency ownership among Americans has not increased.
A report released by the Consumer Finance Institute (CFI) of the Federal Reserve Bank of Philadelphia shows that the recent rise in the crypto market has not led to a corresponding increase in cryptocurrency ownership among US consumers.
CFI collected data from surveys conducted from January 2022 to July 2024, using Bitcoin prices as a benchmark to analyze ownership trends.
Cryptocurrency Ownership Declines During the 2022 Crypto Winter The results of the study show that a sharp decline in cryptocurrency ownership occurred during the so-called "crypto winter" of 2022, when the market experienced a significant decline.
In January 2022, 24.6% of respondents owned cryptocurrency, but by October of the same year, this figure had dropped to 19.1%.
Despite the market recovery over the next 18 months, ownership levels have not returned to previous levels.
By October 2023, cryptocurrency ownership had dropped to 17.1%, and by January 2024, to 15.4%.
Even the rise in Bitcoin prices in March 2024 and its halving in April could not stimulate an increase in the number of cryptocurrency owners. By July 2024, this figure had dropped to 14.7%.
While the number of cryptocurrency owners remains stable, the report notes an increase in the number of people considering buying cryptocurrency in the future.
Interest in future cryptocurrency investments dropped sharply during the 2022 bear market, but has increased significantly with the market recovery.
By April 2024, 21.8% of respondents said they were likely to buy cryptocurrency, down from 10.6% during the downturn.
The CFI study is based on responses from more than 5,000 participants.
Fed Survey Finds 7% of U.S. Adults Use Cryptocurrency The number of U.S. adults reporting owning or using cryptocurrency has dropped significantly, according to the Federal Reserve’s latest annual household survey.
The survey, known as the Survey of Household Economics and Decision Making (SHED), found that approximately 18 million U.S. adults reported using cryptocurrency in 2023, a decline from previous years.
In the 12 months leading up to October 2023, the survey found that 7% of U.S. adults surveyed reported using cryptocurrency, down from 10% in 2022 and 12% in 2021.
This Federal Reserve data is in stark contrast to Coinbase’s claim that 52 million Americans own cryptocurrency.
Meanwhile, nearly 40% of institutional investors had some exposure to crypto assets in 2023, up significantly from 31% in 2021, according to a recent study by KPMG.
According to the survey, a third of respondents reported that at least 10% of their portfolio is in crypto assets, up from just one-fifth two years ago.
The survey also examined the reasons for institutional investors’ growing interest in cryptocurrency.
A majority of respondents, 67%, cited the maturing market and storage infrastructure as a significant factor, up significantly from 14% in 2021.
