Fed Survey: Crypto Ownership Flat Despite Market Growth

September 09, 2024 06:11 PM AEST | By Team Kalkine Media

Google News:

Fed Survey: Crypto Ownership Flat Despite Market Growth — Image source: shutterstock

Recent News

What are next big copper projects? UBS tells when equipment makers cou...

EUR/USD poised to rack up more gains as ECB and Fed rate paths set to...

Carney launches ‘One Canadian Economy’ Act to unify trade, approvals

Trump signs orders to enhance drone defenses, support supersonic trave...

Recent research by the Federal Reserve Bank of Philadelphia’s Consumer Finance Institute (CFI) has revealed that cryptocurrency ownership has not increased significantly despite the market's recent recovery. According to a report released on September 6, 2024, the rate of cryptocurrency ownership among survey participants has remained relatively stable and has not mirrored the resurgence of the crypto market.

The CFI's analysis, based on surveys conducted from January 2022 to July 2024, used Bitcoin’s price fluctuations as a gauge of market conditions, including the severe downturn known as the {crypto} winter, which occurred in late 2022. During this period, cryptocurrency ownership among the surveyed group declined from 24.6% in January 2022 to 19.1% by October 2022.

Despite the subsequent recovery of the crypto market over the following 18 months, ownership rates did not see a corresponding increase. By October 2023, ownership had further decreased to 17.1%, and it fell to 15.4% by January 2024. There was no significant rise in ownership around {Bitcoin} (BTC) peak in March or following its halving event in April. Ownership rates were 16.1% in April and dropped to 14.7% by July 2024.

The report also noted a shift in respondents' intentions regarding future cryptocurrency purchases. Interest in acquiring cryptocurrency declined during the 2022 crypto winter but increased as the market recovered. By April 2024, 21.8% of respondents expressed a likelihood of purchasing cryptocurrency, a notable rise from 10.6% during the downturn.

The CFI's surveys were conducted using two web-based platforms targeting a total of 5,000 nationally representative responses. Despite the significant gains in the crypto market—nearly 150% since the start of 2023—ownership figures have not seen a similar increase. A May 2023 Fed survey estimated approximately 18 million cryptocurrency users in the United States, contrasting with Coinbase’s September 2023 figure of 52 million American crypto owners.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.