Interest in Crypto Stays Strong Despite Crash, BofA Report

interest in crypto stays strong

Despite the seismic shift in the market, interest in crypto stays strong, at least according to Bank of America. In early June, the bank surveyed over 1,000 people, and 91% stated that they expect to buy cryptocurrency in some form in the next 6 months. 

Furthermore, that’s the same percentage as people who actively purchased crypto over the past 6 months. Surprising? It is to many people. 

If you consider the depth of the plunge crypto units have seen as fears of recession grip the market, it’s common to think that people would lose interest. After all, BTC has lost 2/3rds of its value since November. Moreover, Luna and TerraUSD crumbled in main, highlighting the lack of stability in “stablecoins.”

With no end to it in sight, Coinbase announced its plan to cut roughly 18% of its workforce in an attempt to recoup its operating costs. This news came after Celsius, a crypto lender, told its customers they wouldn’t be able to withdraw funds. 

Unexpected as it may be, though, there are still buyers. 

What Does the Survey Say About the Market?

According to analysts in the BofA report, consumer interest in crypto stays strong despite the sharp correction in valuations. 

Roughly 9 out of 10 crypto users and prospects plan to buy more assets within the next 6 months. As mentioned, that’s the same level of buyers active in the past 6 months. 

In the survey, 30% said they had no plans to sell their holdings in the next 6 months. Moreover, the same amount said they have held strong, not selling in the past 6 months. However, many of the people surveyed were short-term investors. 

About 77% stated that they’d had their assets for under a year. In fact, the most common transaction in crypto was valued at under $25. Users from SoFi, CashApp, and Paypal tend to have smaller purchases and a lower income compared to those who use Coinbase, for example. 

Why The Interest in Crypto? 

Among the 58% of participants with current holdings, people said their main reason for investing was the expectation of appreciation in value. Alternatively, others sought to diversify their portfolio while some users simply enjoyed being involved in the crypto community. 

  • 39% of respondents used crypto in an online purchase 
  • 49% have an interest in doing so
  • 34% used it to make a purchase in person
  • 53% have an interest in doing so

“We think this could be explained by the increased popularity of products which allow the use of stored crypto balances for consumer-to-merchant transactions, whereby an intermediary (such as PayPal via its Checkout With Crypto service, or Visa via its Coinbase Card) converts crypto to fiat currency before the merchant gets paid,” analysts stated.

About 10% of respondents who used crypto to make a purchase said they don’t plan to do so again. When asked, they attributed the decision to a lack of acceptance from merchants. 

How Much Crypto Is In Their Portfolios?

According to the survey, most people own a relatively minor amount of cryptocurrency. About 65% have under 10% of their portfolios invested in digital assets. In fact, only 5% of respondents stated that the majority of their portfolio was invested in crypto or another digital asset. 

These are the most common cryptocurrencies people own, according to the survey. 

  • Bitcoin – 75%
  • Ethereum – 44% 
  • Meme coins, such as Shibu or Doge – 26%
  • Stablecoins – 12%
  • TerraUSD – 8% 

Over 50% of those who responded to the survey and own some form of digital asset stated that they also plan to buy NFTs in the coming months. 

So, despite the plunge we continue to see in the market, interest in crypto stays strong among the community overall. Does this point to an upturn in the future as people buy back at a low price? Only time will tell. 

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