Crypto Ownership Plummets as Investors Seek Safer Bets
Crypto's 'honeymoon period' is over as investors lose interest, according to a recent Gallup survey.
The share of U.S. adults who own cryptocurrency has fallen from 14% to 9% in the last year, while among investors with $10,000 or more in investable assets, ownership has dropped from 17% to 11%. Two-thirds of these investors say they're not interested in buying crypto.
Young men are still the most likely to own cryptocurrency, but even among this group, ownership has declined from 33% to 24% over the last year. Professor Jay Zagorsky attributed the decline to a price drop, saying 'tenuous investors' are looking elsewhere for fortune.
Stephen Kates, a certified financial planner, agrees that crypto's popularity has waned. He notes that most of the market's value is concentrated in Bitcoin and Ethereum, which he expects to remain 'mildly popular yet volatile assets'. However, Kates warns that crypto can no longer compete with traditional investments due to rising interest rates.