- Federal Reserve report shows cryptocurrency ownership rates have not increased despite market recovery.
- Ownership fell during the 2022 crypto winter and has not fully rebounded, even as market prices have risen.
- Interest in purchasing crypto is recovering, with more respondents now likely to buy than during the market low.
The Federal Reserve Bank of Philadelphia’s Consumer Finance Institute (CFI) released findings on September 6 showing a surprising disconnect between the growth of the cryptocurrency market and the rate of cryptocurrency ownership among U.S. consumers. Despite substantial price recoveries in the market, the number of people owning cryptocurrencies has not seen a corresponding increase.
Trends in Crypto Ownership
The research, which surveyed individuals from January 2022 to July 2024, used Bitcoin’s price fluctuations as a benchmark to analyze broader market trends and individual ownership patterns. During the crypto winter of 2022, ownership plummeted from 24.6% in January to 19.1% by October. This trend of declining ownership continued into 2024, with only 15.4% of respondents in January claiming to own cryptocurrency, down from 17.1% in October 2023.
This data indicates that while the market prices have started to recover, the rate of ownership has lagged, suggesting potential caution or disinterest from consumers. The CFI noted no significant upticks in ownership even during periods of price peaks, such as Bitcoin’s notable rise in March and its halving event in April, where ownership slightly increased to 16.1% and then fell again to 14.7% by July.
Growing Interest Amid Recovery
Despite the stagnant growth in actual ownership, the Federal Reserve highlighted a notable increase in the interest toward future cryptocurrency purchases. Following the market’s low in 2022, the interest in purchasing cryptocurrencies dipped to 10.6% of respondents. However, as the market began to recover, this interest rebounded sharply, with 21.8% of individuals surveyed in April 2024 expressing a likelihood of buying cryptocurrencies.
This renewed interest could signal a potential shift in future ownership rates if the current market recovery continues and consumer confidence is restored.
Implications for the Crypto Market
The findings from the Federal Reserve suggest that while the cryptocurrency market has demonstrated resilience and potential for growth, the base of cryptocurrency owners is not expanding at the same pace. This could have implications for the future of the market, particularly in how new and existing cryptocurrencies are adopted by the general public.
The Fed’s surveys, targeting 5,000 nationally representative responses, offer a critical insight into the behaviors and sentiments of U.S. consumers towards cryptocurrencies. Despite the bullish trends in market valuations, the cautious approach of consumers towards ownership might influence how the market develops in coming years. With a global user base reportedly exceeding half a billion, understanding these dynamics is crucial for predicting future trends in this volatile market.
