Crypto Ownership Plunges as Investors Seek Safer Options

Crypto ownership has seen a decline over the last year, according to a new Gallup survey. The share of U.S. adults owning cryptocurrency fell from 14% to 9%, while investors with $10,000 or more in investable assets saw their ownership drop from 17% to 11%. Only one in five investors say they're interested in buying crypto, with two-thirds claiming they have no interest.

Professor Jay Zagorsky attributed the decline to a recent price drop, stating that 'tenuous investors' are seeking alternative investment opportunities. Stephen Kates, a certified financial planner, noted that the crypto market's value is concentrated in Bitcoin and Ethereum, and that these assets enjoyed a 'honeymoon period' in the early 2020s.

Kates expects Bitcoin and Ethereum to remain volatile but mildly popular assets, while the broader cryptocurrency ecosystem continues to lose steam. He attributes this decline to the end of cheap money, which has made cryptocurrencies less attractive compared to other investment options.