A recent study from the U.S. Federal Reserve reveals that despite a strong market rebound, cryptocurrency ownership among U.S. consumers has not increased. The report released by the Federal Reserve Bank of Philadelphia’s Consumer Finance Institute (CFI) analyzed ownership trends using data from surveys conducted between January 2022 and July 2024, with Bitcoin prices as a reference point. The findings indicate that crypto ownership declined during the “crypto winter” of 2022, with ownership rates dropping from 24.6% in January 2022 to just 15.4% in January 2024. Even Bitcoin’s price surge and halving in 2024 failed to spur an increase in ownership, with rates continuing to decline, reaching 14.7% by July of that year.
While ownership numbers have remained stagnant, the report highlights an increase in the number of people considering purchasing cryptocurrencies in the future. Interest in future crypto investments plummeted during the 2022 bear market but surged as the market recovered. By April 2024, 21.8% of survey respondents expressed a likelihood of buying crypto, up from a low of 10.6% during the downturn. The CFI’s research is based on responses from over 5,000 participants. This indicates that while ownership rates have not increased significantly, interest in crypto investments is on the rise among U.S. consumers.
The Federal Reserve’s Survey of Household Economics and Decisionmaking (SHED) reveals that the number of US adults reporting cryptocurrency ownership or usage has seen a significant decline. Approximately 18 million US adults reported using cryptocurrencies in 2023, down from previous years. In the 12-month period leading up to October 2023, 7% of surveyed US adults reported using cryptocurrencies, a decrease from 10% in 2022 and 12% in 2021. These findings contrast with Coinbase’s claim that 52 million Americans own cryptocurrencies. Furthermore, nearly 40% of institutional investors had exposure to crypto assets in 2023, compared to 31% in 2021, according to a survey conducted by KPMG. A third of respondents reported having at least 10% of their portfolio allocated to crypto assets, representing an increase from previous years.
The Federal Reserve’s report indicates that despite the market rebounding, with Bitcoin seeing significant price increases since October 2023, ownership rates among retail investors have not shown a corresponding increase. The trend of declining ownership rates has persisted, even as the market recovered from the 2022 downturn. This raises questions about the factors influencing consumer decisions regarding crypto ownership, given the disconnect between market performance and ownership numbers. The report also highlights the growing interest among consumers in future crypto investments, indicating a potential shift in sentiment towards digital assets among U.S. consumers.
The survey conducted by the Federal Reserve Bank of Philadelphia’s Consumer Finance Institute provides valuable insights into the behavior of U.S. consumers towards cryptocurrency ownership. The data collected from surveys conducted over a span of two years sheds light on the impact of market trends on consumer decisions regarding crypto investments. The findings reveal a disconnect between market performance and ownership rates, with ownership numbers declining despite market rebounds. This discrepancy underscores the complex factors at play in consumer decisions regarding cryptocurrency investments, highlighting the need for further research and analysis to understand consumer behavior in the digital asset space.
The Federal Reserve’s Survey of Household Economics and Decisionmaking (SHED) reflects a broader decline in cryptocurrency ownership among U.S. adults, with a decreasing number of individuals reporting using digital assets. The survey findings indicate a shift in consumer behavior towards cryptocurrencies, with fewer individuals engaging in crypto ownership or usage compared to previous years. This trend contrasts with the increasing interest and exposure to crypto assets among institutional investors, pointing to diverging trends in the adoption of digital assets between retail and institutional participants. The findings from these surveys provide valuable insights into the evolving landscape of cryptocurrency ownership and usage in the United States, highlighting the need for further research to understand the driving forces behind these trends.
