The steep decline in crypto ownership occurred during the 2022 “crypto winter.”
Despite a robust market rebound, ownership of cryptocurrencies has not increased, according to a recent study from the U.S. Federal Reserve.
The report, released by the Federal Reserve Bank of Philadelphia’s Consumer Finance Institute (CFI), reveals that recent crypto market growth has not been matched by a corresponding rise in ownership among U.S. consumers.
In order to analyze ownership trends, the CFI collected data from surveys conducted between January 2022 and July 2024, using the price of Bitcoin as a point of reference.
Crypto Ownership Declined During 2022 Crypto Winter
The results show that the market experienced a notable downturn during the so-called “crypto winter” of 2022, which coincided with a sharp decline in cryptocurrency ownership.
The percentage of survey participants who owned cryptocurrencies fell from 24.6% in January 2022 to 19.1% in October of the same year.
Over the next eighteen months, ownership rates did not significantly increase, despite the market’s recovery.
The ownership of cryptocurrency had dropped to 17.1% by October 2023 and to just 15.4% by January 2024.
Remarkably, ownership rates continued to fall, reaching 14.7% by July, despite Bitcoin’s price spike in March 2024 and its halving in April.
Fed’s Crypto Ownership Report: Why the Money’s Not Following the Moon
— Crypto Town Hall (@Crypto_TownHall) September 8, 2024
Philly Fed’s latest report spills some cold truth: even with Bitcoin on a tear since October ‘23, retail ownership hasn’t budged.
Six surveys since 2022 reveal the same story – price pumps aren’t pulling in… pic.twitter.com/SlXJZhKCon
The research observes that while ownership figures are unchanged, more people are now contemplating buying cryptocurrencies in the future.
During the 2022 bear market, interest in making future cryptocurrency investments fell, but as the market recovered, interest in doing so increased.
The percentage of respondents who said they would buy cryptocurrency increased from 10.6% at the beginning of the downturn to 21.8% by April 2024.
The responses of more than 5,000 participants served as the basis for the CFI’s study.
Fed Survey Finds 7% of US Adults Using Crypto
The Federal Reserve’s most recent annual household survey indicates that fewer American adults are reporting owning or using cryptocurrency.
According to the Survey of Household Economics and Decisionmaking (SHED), fewer US adults than in previous years reported using cryptocurrencies in 2023—roughly 18 million people.
According to the survey, 7% of US adults surveyed said they used cryptocurrencies in the 12 months ending in October 2023, down from 10% in 2022 and 12% in 2021.
These findings from the Federal Reserve survey significantly differ from Coinbase’s claim that 52 million Americans own cryptocurrencies.
In the meantime, a recent KPMG survey found that almost 40% of institutional investors had some exposure to crypto assets in 2023—a significant increase from the 31% reported in 2021.
In contrast to just a fifth of respondents two years ago, a third of respondents to the survey stated that at least 10% of their portfolio was made up of cryptocurrency assets.
The poll also looked into the factors that are causing institutional investors to become more interested in cryptocurrencies.
The maturing market and custody infrastructure were cited as significant factors by the majority of respondents (67%), a significant increase from the 14% recorded in 2021.