Interest in cryptocurrencies among Bank of America customers has soured significantly in the wake of Bitcoin and other digital tokens plunging in price, according to news reports.
The company had fewer than 500,000 active cryptocurrency users in May, down from over one million in November, when Bitcoin and other digital tokens reached all-time highs, Bloomberg writes.
Bitcoin is trading slightly over $19,000 after falling close to 60% this year, according to the news service. Overall cryptocurrency market capitalization has dropped from roughly $3 trillion in November 2021 to less than $1 trillion, Bloomberg writes.
Bank of America derived the number of active cryptocurrency users by analyzing the number of customers sending or receiving a payment to or from a cryptocurrency platform, according to the news service. The data doesn’t show the actual transactions, Bloomberg writes.
Last month, meanwhile, the company also saw an increase of 30% among investors who say they aren’t investing in crypto and have no plans to start, up from 21% in April, according to the news service.
Bank of America added that “relatively few people view crypto assets as a reliable long-term investment,” with assets in crypto representing less than 1% of U.S. household financial assets overall, according to Bloomberg.
Financial advisors have been cooling on crypto as well. Last month, the Financial Planning Association released a survey conducted in February and March showing that only 11% of advisors were using or recommending crypto to their clients, down from 14% in 2021. And while 13% of advisors in this year’s survey said they planned to increase their use of crypto, 11% said they plan to lower it, according to the FPA.
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