Crypto Ownership Declines as Market Loses Steam

Crypto ownership has declined significantly over the past year, according to a new Gallup survey. The percentage of U.S. adults who own cryptocurrency has fallen from 14% to 9%, while investors with $10,000 or more in investable assets have seen their interest in crypto drop from 17% to 11%. This decline is attributed to the end of the 'honeymoon period' for cryptocurrencies, which saw a price drop over the last year.

Young men aged 18-49 are the most likely to own cryptocurrency, but even among this subgroup, ownership has fallen from 33% to 24% over the last year. Professor Jay Zagorsky noted that the price drop has sent 'tenuous investors looking elsewhere for their fortunes.' Stephen Kates, a certified financial planner, agrees that the broader cryptocurrency ecosystem has not been as kind to most assets since the early 2020s.

Kates expects Bitcoin and Ethereum to remain popular yet volatile assets. However, he believes crypto is no longer seen as the 'it' investment. The end of cheap money means cryptocurrencies must compete with less risky, yield-producing assets for investor capital, making them less appealing to investors.