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Crypto ownership growth lags despite recent market recovery

Crypto ownership growth lags despite recent market recovery

GrafaGrafa2024/09/09 06:15
By:Mahathir Bayena

The growth of cryptocurrency ownership has not kept pace with the recent resurgence in the crypto market, according to a report by the Federal Reserve Bank of Philadelphia’s Consumer Finance Institute (CFI).

The report, released on September 6, highlights that the rising prices in the cryptocurrency market have not been matched by an increase in ownership among consumers.

The CFI gathered data on cryptocurrency ownership from surveys conducted between January 2022 and July 2024.

The surveys used Bitcoin's (CRYPTO:BTC) price trends as a proxy to assess the impact of the crypto winter that occurred in late 2022.

The data showed a decline in crypto ownership from 24.6% in January 2022 to 19.1% by October 2022 during the bear market.

Despite a recovery in the market over the following 18 months, ownership rates did not see a corresponding increase, dropping further to 15.4% in January 2024.

Even around significant market events like Bitcoin's price peak in March and its April halving, crypto ownership rates did not show a substantial rise.

By April 2024, the ownership rate was at 16.1%, falling again to 14.7% in July 2024.

The report suggests that while there has been no significant rise in current ownership, interest in future crypto purchases has grown.

During the 2022 downturn, only 10.6% of respondents expressed interest in buying crypto.

However, as the market recovered, this number jumped to 21.8% by April 2024.

The Fed's surveys were based on two separate web-based surveys that collected responses from 5,000 participants across the United States.

Despite the market's gains of nearly 150% since early 2023, the Fed's findings suggest that actual ownership of cryptocurrencies remains subdued.

For context, the Fed reported in May 2024 that around 18 million Americans owned or used crypto, a significantly lower number compared to Coinbase's estimate of 52 million.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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