Bitcoin Price Gains Draw New Investors into Crypto

A Federal Reserve Bank of Cleveland experiment found that Bitcoin price gains can draw new investors into crypto by lifting expectations for future returns.

The researchers divided participants into groups and provided them with different pieces of financial information during the second quarter of 2025. One group was told Bitcoin had returned 14.3% over the previous 12 months, while another was shown a Bitcoin price chart covering the same period.

Participants who received Bitcoin's return information were about 2.5 percentage points more likely to own crypto later, with roughly 11% of respondents owning crypto before the experiment. This change amounted to a 23% increase in the likelihood of ownership.

The results offer rare experimental evidence for a dynamic long associated with speculative markets: past gains can influence what investors expect next and, in turn, where they put their money.