Bank of America's active cryptocurrency users decrease by more than 50% in bear market

07-Jul-2022 By: Shikha Jha

Bank of America's active cryptocurrency users decrease by more than 50% in bear market

According to data from Bank of America, the proportion of its clients who actively utilize cryptocurrencies had decreased by more than 50% since November of last year, when it peaked. The bank also stated that its data "shows that inflows to crypto platforms have declined dramatically," indicating that "consumers are pulling back on their net investment into crypto platforms."

Following a peak in November of last year, the number of active cryptocurrency users has sharply decreased, according to a survey released last week by Bank of America. Anonymized internal customer data from Bank of America shows a sharp decline in the number of active cryptocurrency users—more than 50%—from a peak of over 1 million users in Nov. 2021 to less than 500,000 in May.

As a result of the study, we also discovered that the number of "first-time" users, or clients who conducted a transaction using a cryptocurrency platform for the first time, had drastically fallen.

Bank of America added that compared to the 267,000 first-time users in October of last year, just about 33,000 consumers made cryptocurrency transactions in May, a fall of 87%.

The Bank of America research also mentions that our data reveals that outflows from cryptocurrency platforms have dramatically decreased and are currently almost equal to inflows, suggesting that consumers are decreasing their net investment in cryptocurrency platforms.

More than 1,000 present and potential American cryptocurrency investors responded to a study conducted by Bank of America, and the findings showed that 91% of them intended to increase their purchases of digital assets over the following 6 months. Additionally, approximately 40% of respondents admitted to using cryptocurrencies as a form of payment.

At the time, the bank's research team stated: "Overall, our data imply that consumer interest in the sector remains high despite the significant fall in crypto values."

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