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Crypto Engagement Falls to 7% Among US Adults in 2023, Fed Says
A Federal Reserve survey indicated a decline in cryptocurrency engagement among U.S. adults, with only 7% expected to use or hold digital assets in 2023.
The Survey of Household Economics and Decision Making (SHED), conducted in October 2023, found that the number of adults involved in cryptocurrency fell to 18 million, compared to 10% in 2022 and 12% in 2021.
The survey also found that only 1% of adults used crypto for financial transactions, representing a 50% reduction from the previous year.
Despite the observed decline in the use of cryptocurrencies, the digital asset sector continues to exert influence in other areas, such as politics.
Public opinion polls indicate that American voters expect presidential candidates to be proficient in emerging technologies, including AI and cryptocurrencies.
According to California cryptocurrency owners have the potential to influence the outcome of the 2024 election, according to Coinbase.
Although the Fed’s findings suggest a decline in interest in cryptocurrencies as both an investment option and a means of transaction, it is worth noting that the cryptocurrency market has reversed the trend this year .
In January, the U.S. Securities and Exchange Commission approved Bitcoin spot exchange-traded funds after disallowing the financial instrument for one case.
At the end of October 2023, the cryptocurrency market was valued at approximately US$1.3 trillion, according to CoinGecko data.
This value has more than doubled and the sector’s market capitalization is estimated at US$2,675 billion as of May 23.