A new report from the Philadelphia Fed's Consumer Finance Institute (CFI) shows that the number of Americans who don't own cryptocurrencies is less likely to make future purchases, despite overall ownership rates declining. It became clear that they were interested.
The April 2024 Labor, Income, Finances, and Expectations (LIFE) survey found that 13.4% of respondents who had never owned a cryptocurrency before (often referred to as “non-coin owners”) It has been shown that they are more likely to purchase digital assets.
This represents a significant increase from just 6.9% in January 2022 and indicates an increase in potential new market participants.
The CFI report also revealed a significant increase in future purchase intent, especially among non-owners. According to the April 2024 LIFE survey, 21.8% of all respondents said they are likely to purchase cryptocurrencies in the future, up from just 10.6% in October 2022.
Reduced ownership
Despite this growing interest among no-coiners, overall cryptocurrency ownership has steadily declined over the past two years, even as Bitcoin (BTC) hits new highs in 2024. I am doing it. The study provided insight into the remaining effects of the 2022 “crypto winter.” A sharp decline in the value of virtual currencies.
In the January 2022 survey conducted just before the economic downturn, the ownership rate was 24.6%, but in the October 2022 survey, the ownership rate dropped significantly to 19.1% due to the plummeting price of Bitcoin. It was shown that
Once the market stabilized and began to recover, ownership levels continued to decline, with only 17.1% of respondents owning cryptocurrencies by October 2023, despite prices increasing during that period. It became.
Bitcoin prices soared more than 60% in the first quarter of 2024, but ownership declined again, reaching 15.5% by January. According to the report, the ownership rate rebounded slightly in April to 16.1%, but by July 2024, the ownership rate will be at its lowest at 14.7%, even as Bitcoin hovers near five-year highs. Reached the point.
According to the report:
“There is a clear disconnect between the rise in the market and the decline in ownership. More non-owners are showing interest in cryptocurrencies, but this has not translated into an increase in ownership.”
cutting
The report says that while the rapid rise in prices has led to increased interest, particularly from no-coiners, regulatory uncertainty and concerns about market volatility may be keeping potential buyers on the sidelines. I'm guessing.
Additionally, changes in research methods may partially explain this trend. While an earlier survey conducted in 2022 asked respondents about crypto ownership within their household, the 2023 and 2024 LIFE surveys focused solely on individual ownership. I did.
Despite slight methodological differences, the CFI report asserted that the data were comparable across surveys, showing that the decline in ownership reflects broader consumer sentiment.
The report concluded that although ownership rates are unlikely to recover in the short term, increased interest from non-owners could ultimately lead to new growth in the market. However, this may largely depend on regulatory developments as government agencies continue to seek a clearer framework for investing and trading in cryptocurrencies.
Tom Akana, author of the report, said:
“The next few years will be critical in determining whether this increased interest among nocoiners translates into actual participation in the crypto market.”
