The continuous sell-off in cryptocurrency market has caused many investors to consider alternative assets. According to reports released by Bank of America (BAC), the second-largest U.S. bank, the bank’s active crypto activities slumped by over 50% between November last year and May 2022.
Bank’s Crypto Users Continues to Shrink
Internal data also suggest that sentiments towards crypto activities slump significantly between April and June, this year, as the digital currency market continues to endure a bearish winter. Surveys conducted among 1000 people showed that at least 30% of users engaged haven’t invested in cryptocurrency and had no immediate plans to do so.
Elsewhere, the number of first-time crypto users has fallen sharply. Only about 33,000 of the bank’s customers have transacted in cryptocurrencies since May. This shows an 87% drawdown from over 267,000 clients who transacted in cryptocurrencies between October 2021.
Similarly, Bank of America’s data shows that the flows of digital currencies into crypto platforms have tumbled significantly and are now on par with outflows. This shows that investors are scaling back their overall investment in crypto platforms.
For one-third of clients, the bank is handling crypto transactions, data continues to show only a single transaction. And generally for smaller amounts. In terms of numbers, these transactions are for only 5% of the dollar value of crypto transactions. The report also added that nearly 69% of customers who executed crypto transactions during the height of the pandemic are no longer active.
The note further highlighted that nearly 70% of the U.S. population has not invested in digital currencies and is not showing any interest in digital assets.
Though there is a considerable decline in crypto investments, it is largely due to the continued sell-off in the markets. While we are optimistic that things will bounce back, we can only watch to see how things play out.
As of the time of writing this report, Bitcoin; the number one digital asset by market cap, was up 3% in the last 24 hours and trading at $19,169 across major exchanges. Ethereum is also up by 4% and trading at $1,074.