Bank of America’s Active Crypto Users Drop More Than 50% in Bear Market

Bank of America’s Active Crypto Users Drop More Than 50% in Bear Market

Bank of America's Active Crypto Users Drop More Than 50% in Bear Market

Bank of America has revealed that the variety of its prospects who’re energetic crypto customers has declined greater than 50% from its peak in November final 12 months. In addition, the financial institution mentioned its information “reveals that outflows to crypto platforms have fallen sharply,” indicating that “customers are pulling again on their web funding into crypto platforms.”

Bank of America’s Active Crypto Users

Bank of America revealed a report final week displaying a steep decline within the variety of energetic cryptocurrency customers from its peak in November final 12 months. The financial institution defined:

Anonymized Bank of America inside buyer information reveals a pointy, larger than 50%, decline within the variety of energetic crypto customers from the height of over 1 million customers in November 2021 to beneath 500,000 in May.

“We additionally discovered that ‘first time’ customers, prospects who made a transaction with a crypto platform having not made one beforehand, have additionally fallen very sharply,” the report provides.

Bank of America additional famous that there have been solely round 33,000 purchasers who transacted in crypto for the primary time in May, which was an 87% decline in comparison with the 267,000 first-time customers in October final 12 months.

In addition, the Bank of America report particulars:

Our information additionally reveals that outflows to crypto platforms have fallen sharply as effectively and are actually broadly equal to inflows, indicating that customers are pulling again on their web funding into crypto platforms.

“In greenback phrases outflows peaked round $2.9 billion in late 2021, earlier than dropping again to round $1 billion in May 2022,” the financial institution mentioned.

In June, Bank of America launched the outcomes of a survey displaying that 91% of greater than 1,000 present and potential U.S. crypto traders plan to purchase extra digital belongings within the subsequent six months. Moreover, practically 40% of respondents revealed that they use cryptocurrency as a method of fee.

The financial institution’s analysis group noted on the time: “Overall, our findings recommend that regardless of the sharp correction in crypto valuations, client curiosity within the sector stays robust.”

What do you consider Bank of America’s information on energetic crypto customers? Let us know within the feedback part beneath.

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