Crypto Ownership Declines as Investors Seek Safer Bets
Crypto ownership has declined over the last year, according to a Gallup survey. The percentage of all U.S. adults who own cryptocurrency fell from 14% to 9%, and among investors, it dropped from 17% to 11%. Two-thirds of investors with $10,000 or more in investable assets say they aren't interested in buying crypto, up just a few percentage points compared to last year.
Young men, aged 18-49, are the most likely to own crypto, but even among this subgroup, ownership has fallen from 33% to 24%. Professor Jay Zagorsky blames the decline on a crypto price drop over the last year, which has sent 'tenuous investors' looking elsewhere. Stephen Kates, a certified financial planner and principal at Clocktower Financial Consulting, notes that bitcoin and Ethereum still have some staying power but expects many other coins and tokens to fade into obscurity.
Kates attributes the decline in crypto ownership to several factors, including the end of cheap money, which means cryptocurrencies must compete with less risky assets for investor capital. He also mentions the rise of sports betting and prediction markets, which have expanded speculative opportunities and may have displaced some crypto speculation.