U.S. Crypto Ownership Declines Despite Market Resurgence: Fed

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Recent Federal Reserve research indicates that crypto ownership in the United States has declined, even as the crypto market experienced a resurgence in 2023.

The findings come from the Federal Reserve Bank of Philadelphia’s Consumer Finance Institute (CFI), which published a report noting a lack of correlation between the growing market and ownership rates.

Crypto Ownership Decline

The CFI’s research shows that while the cryptocurrency market has recovered since the 2022 downturn, ownership rates have not followed suit. Surveys conducted by the CFI between January 2022 and July 2024 found a notable drop in crypto ownership during the “crypto winter” of 2022.

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In January 2022, 24.6% of the surveyed population owned cryptocurrency, but by October 2022, that figure had decreased to 19.1%. This decline persisted even as the market improved, with ownership slipping to 17.1% by October 2023 and further to 15.4% in January 2024.

Even Bitcoin’s price peak in March and its halving event in April did little to reverse the trend. Ownership rates barely budged, standing at 16.1% in April and dropping again to 14.7% by July 2024. Despite the positive market movement, crypto ownership has not regained the momentum it lost during the 2022 bear market.

Future Interest in Crypto Grows

Though crypto ownership rates are falling, interest in future cryptocurrency purchases appears to be on the rise. According to the report, the percentage of respondents who are likely to buy crypto in the future has increased.

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During the 2022 crypto winter, only 10.6% of respondents indicated they were interested in purchasing digital assets. However, as the market began to recover, that number shot up to 21.8% by April 2024.

Meanwhile, the upcoming elections would also affect the crypto adoption in the U.S. Former U.S. president Donald Trump recently vowed to make the nation a crypto leader, if he wins the election.

Discrepancy in Data

Notably, the Fed’s findings contrast with other industry reports. In May 2023, the Fed conducted another survey, which estimated that approximately 18 million Americans owned or used cryptocurrency. This figure is notably lower than a report from Coinbase in September 2023, which estimated that around 52 million Americans held some form of crypto assets.