According to JPMorgan Chase recently, approximately 43 million Americans or 13% of the country’s total population own cryptocurrency at some point in their lives.
Dynamics and Demographics of Crypto-Asset Use in US Households, Report released on December 13th He shows that this share has increased significantly, as it was only 3% before 2020.
The latest information was obtained from JPMorgan from a survey of current account transfers from a sample of more than five million customers. It was discovered that between 2020 and 2022, 600,000 customers in this sample set made a cash transfer to a cryptocurrency account.
Crypto bull is what drove most of them
The survey also found that Bitcoin owners often made their first purchases during periods of rising prices. During this period, funds are often sent to cryptocurrency exchange accounts at a much higher rate than they are withdrawn. In other words, at this time, the majority of people were holding their cryptocurrency.
According to JPMorgan, this changed in early 2022 when cryptocurrency values plummeted. Cash flows to cryptocurrency exchanges barely exceeded cash transfers from them.
The report also stated that the majority of respondents invested less than one month’s income in cryptocurrency, with the average amount transferred being just $620.
This is perhaps for the best, as last year’s peak in cryptocurrency prices coincided with an increase in remittances. The institute discovered that the typical transfer occurred while the bitcoin price was around $43,900. Currently, the price of one bitcoin is around $17,000.
According to JPMorgan, this is due to lower cryptocurrency prices and a larger pattern of the US savings rate declining since the pandemic. they said,
“We see the increase and decrease in cryptocurrency use since covid began as consistent with the interrelationship between retail flows and market prices seen in previous research. In addition, the trend in cryptocurrency flows also tracks the dynamics of household savings, which have risen to historical levels. early in the epidemic but it is starting to reverse.”
And what is the age of majority for buyers?
The survey analyzed whether certain demographic groups are more likely to purchase cryptocurrencies. It found that younger people are acquiring much more cryptocurrency than older people and that men of all ages are buying much more than women.
For example, the study found that more than 25% of millennial men have purchased cryptocurrency, compared to just 12% of millennial women and 5% of males.
In 2022, the cryptocurrency market has experienced a sharp decline. While ether has fallen from $3,521 in April to $1,273 at the time of writing, bitcoin has fallen from its 2022 high of $47,459 in March to $17,208 at the time of writing.
Industrial shocks such as the loss of the stablecoin TerraUSD (UST) in May and the bankruptcy of cryptocurrency exchange FTX in November are the reason for the current downturn in the cryptocurrency market.