Crypto Ownership Falls as Investors Turn to Safer Options
Crypto ownership has declined over the past year, according to a new Gallup survey. The share of all U.S. adults who own cryptocurrency fell from 14% to 9%, while among investors, it dropped from 17% to 11%. This decline is attributed in part to a price drop for many cryptocurrencies, with Bitcoin trading around $86,000 per coin as of Tuesday afternoon, down from its peak last fall.
Professor Jay Zagorsky notes that the crypto price drop has sent 'tenuous investors ... looking someplace else to make their fortune.' Stephen Kates, a certified financial planner and principal at Clocktower Financial Consulting, adds that while Bitcoin and Ethereum may remain 'mildly popular' assets, many others in the cryptocurrency ecosystem are likely to fade into obscurity.
Kates explains that the end of cheap money has made cryptocurrencies compete with less risky assets for investor capital. He also notes the rise of sports betting and prediction markets as alternative outlets for speculative opportunities, which may have contributed to the decline in crypto ownership.