Cryptocurrency Activity Among Bank of America Customers Decreased When the Market Fell
- According to the bank, around 70% of Americans have either never invested in cryptocurrencies or do not have any interest in doing so.
- According to the bank’s poll, just a small percentage of individuals consider crypto assets to be “solid long-term investments.”
- According to BofA’s data, flows into and out of cryptocurrency platforms have both decreased and are now almost equal, showing that consumers are decreasing their “net investment in crypto platforms.”
As the crypto market slumped from its highs, the number of active crypto users among Bank of America (BAC) customers slumped more than 50% to fewer than 500,000 between November and May, the second-largest U.S. bank said in a report Wednesday. The data was gathered internally. This is a significant drop, given that BAC is one of the largest banks in the United States.
It’s possible that this trend is indicative of a similar trend among other large banks’ customers. If so, this could mark a major shift in how people are using cryptocurrency. While it’s unclear why there was such a steep drop-off in activity, it’s likely that the bear market played a role. As prices fell and news stories about crypto scandals made headlines, many people who had been dabbling in cryptocurrency may have decided to cash out and move on to other investments.
The Bank of America also discovered that attitudes regarding cryptocurrencies among the general public deteriorated between April and June of this year as the market headed toward a record half-year loss. According to surveys of 1,000 people, 30% of those surveyed in June had not invested in cryptocurrencies and had no plans to do so, up from 21% in April.
The number of people using cryptocurrency for the first time dropped significantly. Only approximately 33,000 customers made their first cryptocurrency transaction in May, an 87 percent decrease from almost 267,000 customers in October 2021.
According to the report, about 70% of Americans either haven’t invested in cryptocurrencies or aren’t interested in doing so. It also said that it seems that many consumers haven’t bought into the crypto market, or, if anything, their “inclination towards doing so has diminished” in recent months.