2024-10-1 01:00 |
A growing number of Americans who do not own cryptocurrency are expressing interest in making future purchases, even as overall ownership rates decline, according to a new report by the Federal Reserve Bank of Philadelphia’s Consumer Finance Institute (CFI).
The April 2024 Labor, Income, Finances, and Expectations (LIFE) Survey showed that 13.4% of respondents who had never owned cryptocurrency, often referred to as “no coiners,” are now likely to purchase digital assets in the future.
This represents a significant increase from just 6.9% in January 2022, signaling a rise in potential new market participants.
The CFI report also revealed a significant uptick in future purchase intent, especially among non-owners. According to the April 2024 LIFE Survey, 21.8% of all respondents indicated they were likely to buy crypto in the future, up from just 10.6% in October 2022.
Ownership declineDespite this growing interest among nocoiners, overall crypto ownership has steadily declined in the last two years despite Bitcoin’s (BTC) reaching new highs in 2024. The survey offered insight into the lingering effects of the “crypto winter” of 2022, a period marked by steep declines in crypto values.
The January 2022 survey, conducted just before the downturn, recorded ownership at 24.6%, while the October 2022 results showed a significant decline to 19.1% as Bitcoin prices plummeted.
As the market began to stabilize and recover, ownership levels continued to drop, with only 17.1% of respondents owning crypto by October 2023, despite prices rising during that period.
In the first quarter of 2024, Bitcoin prices surged by over 60%, but ownership dropped again, reaching 15.5% by January. The report showed a slight recovery to 16.1% in April, but by July 2024, ownership hit its lowest point at 14.7%, even as Bitcoin hovered near five-year highs.
According to the report:
“There’s a clear disconnect between the rising market and declining ownership. While more non-owners are expressing interest in crypto, this hasn’t translated into increased ownership.”
The disconnectThe report speculates that while the rapid growth in prices has generated increased interest, particularly from nocoiners, regulatory uncertainty and concerns over market volatility may be keeping potential buyers on the sidelines.
Additionally, changes in survey methodology may partially account for the trend. The earlier surveys conducted in 2022 asked respondents about crypto ownership within their household, while the 2023 and 2024 LIFE Surveys focused solely on individual ownership.
Despite the slight methodological differences, the CFI report asserted that the data remains comparable across surveys, indicating that the drop in ownership is reflective of broader consumer sentiment.
The report concluded that while ownership rates are unlikely to rebound in the short term, rising interest among non-owners could eventually lead to renewed market growth. However, this may depend heavily on regulatory developments as government agencies continue to explore clearer frameworks for crypto investment and trading.
According to the report’s author Tom Akana:
“The next few years will be critical in determining whether this growing interest from nocoiners will translate into actual participation in the crypto market.”
The post Bitcoin’s price surge draws interest from ‘nocoiners’ but ownership stagnant – Fed survey appeared first on CryptoSlate.
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