Bitcoin Ownership Rates Contradict Market Recovery, Raising Concerns About Crypto Winter Impact

In what could be a concerning trend for the industry, a Federal Reserve survey found that the cryptocurrency market's growth this year has not resulted in an equivalent rise in cryptocurrency ownership.

A recent survey by the Consumer Finance Institute of the Federal Reserve Bank of Philadelphia has shown that the cryptocurrency market's growth this year does not seem to be translating into increased ownership.

The survey, which tracks Bitcoin (BTC) market price and ownership over the last two years, found that ownership rates dropped from 24.6% in January 2022 to 19.1% in October 2022, during the crypto winter. Around this time, the price of Bitcoin fell nearly 60%.

Despite the market recovering over the following months, ownership did not increase. By October 2023, only 17.1% of respondents owned cryptocurrency.

Prices began accelerating in October 2023 and by January 2024, over half of the value lost during the crypto winter was regained. However, ownership dropped to 15.5%.

By the next survey in April 2024, ownership had risen slightly to 16.1%, which is低い ownership compared to the 66% increase in price. This period also saw Bitcoin hit its all-time high.

Between April and July, prices remained high, but the survey reported a further decrease in ownership to 14.7%.

Interestingly, the low ownership also contrasts with the findings of the April 2024 survey, which found that over 21% of respondents were planning to buy cryptocurrencies in the future. In October 2022, this number was just over 10%.

The findings of the CFI survey could raise concerns about the prevailing sentiment around the asset class and the lasting impact of the crypto winter.

Bitcoin is up 28.85% year-to-date, outperforming blue-chip equity indices like the S&P 500 and even gold. However, its decreasing ownership may be linked to concerns over its price fluctuations, which have also been increasing this year.

At the time of writing, Bitcoin was trading at $54,632.87, up 3.71% over the last 24 hours, according to data from Benzinga Pro.

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