Fed Research Shows Stagnant Crypto Ownership Despite Market Resurgence

A recent study from the U.S. Federal Reserve reveals that cryptocurrency ownership has not increased, despite a strong market rebound.

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.

The CFI gathered data from surveys conducted between January 2022 and July 2024, using Bitcoin prices as a reference to analyze trends in ownership.

Crypto Ownership Declined During 2022 Crypto Winter

The findings indicate that the steep decline in cryptocurrency ownership occurred during the so-called “crypto winter” of 2022, when the market suffered a significant downturn.

In January 2022, 24.6% of survey respondents owned cryptocurrencies, but by October of the same year, that figure had dropped to 19.1%.

Even with the market’s recovery over the following 18 months, ownership rates did not see a meaningful rebound.

By October 2023, crypto ownership had fallen further to 17.1%, and by January 2024, it reached just 15.4%.

Notably, even Bitcoin’s price surge in March 2024 and its halving in April failed to spur an increase in ownership, with rates continuing to decline, reaching 14.7% by July.

Fed’s Crypto Ownership Report: Why the Money’s Not Following the Moon

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

— Crypto Town Hall (@Crypto_TownHall) September 8, 2024

Although ownership numbers remain stagnant, the report notes that there has been an increase in the number of people considering purchasing cryptocurrencies in the future.

Interest in future crypto investments plummeted during the 2022 bear market, but as the market recovered, interest surged.

By April 2024, 21.8% of respondents expressed a likelihood of buying crypto, up from a low of 10.6% during the downturn.

The CFI’s research is based on responses from over 5,000 participants.

Fed Survey Finds 7% of US Adults Using Crypto

The number of United States adults reporting crypto ownership or usage has seen a significant decline, according to the latest annual household survey conducted by the Fed.

The survey, known as the Survey of Household Economics and Decisionmaking (SHED), indicates that approximately 18 million US adults reported using cryptocurrencies in 2023, representing a drop from previous years.

In the 12-month period leading up to October 2023, the survey found that 7% of the surveyed US adults reported using cryptocurrencies, 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.

Meanwhile, nearly 40% of institutional investors had some exposure to crypto assets in 2023, a notable rise from the 31% recorded in 2021, according to a recent survey conducted by KPMG.

Per the survey, a third of respondents reported having at least 10% of their portfolio allocated to crypto assets, compared to only a fifth of respondents two years ago.

The survey also explored the reasons behind institutional investors’ growing interest in cryptocurrencies.

A majority of respondents, 67%, cited the maturing market and custody infrastructure as a significant factor, a significant increase from the 14% recorded in 2021.