Crypto Investors Uniquely Driven by Extreme Optimism: Study
A new study by the Cleveland Fed reveals that investors in cryptocurrencies hold unusually optimistic beliefs compared to those who invest in stocks, bonds, or gold.
The study found that cryptocurrency ownership among US households rose from about 3% in 2021 to 11-12%, fluctuating with Bitcoin prices. The researchers identified key characteristics of crypto holders: they tend to be young, male, higher-income, and libertarian or politically independent.
'Crypto holders expect much higher rates of return for crypto,' the study states, 'and perceive it as relatively safer than non-holders do.' According to the research, these investors expect returns around 22% annually versus 7% for non-holders. Furthermore, when provided with information about historical cryptocurrency returns, individuals tend to increase their desired crypto holdings and subsequent purchases.