Crypto Ownership Falls as Investors Seek Less Risky Options
Cryptocurrency ownership has declined in the US over the last year, according to a new Gallup survey. The share of all U.S. adults who own crypto fell from 14% to 9%, while among investors with $10,000 or more in investable assets, it dropped from 17% to 11%. Two-thirds of these investors 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 group, ownership has fallen from 33% to 24% over the past year. Professor Jay Zagorsky notes that a recent price drop has sent 'tenuous investors' looking elsewhere for investment opportunities.
Stephen Kates, a certified financial planner, points out that the majority of the crypto market's value is concentrated in Bitcoin and Ethereum. He says these two assets will likely remain 'mildly popular' yet volatile, but predicts that other coins and tokens will fade into obscurity or remain speculative outlets.
Kates also notes that the end of cheap money means cryptocurrencies must compete with less risky investments for investor capital. The rise of sports betting and prediction markets has expanded opportunities for speculation, which may be displacing some crypto investment.