The JPMorgan report is based on a study of cash transfers from banks to crypto accounts for over 5 million customers.


Around 13% of the yank population — or 43 million individuals — have command cryptocurrency at some purpose in their lives, new analysis from JPMorgan Chase has revealed. 

According to a Dec. 13 report titled "The Dynamics and Demographics of U.S. home Crypto-Asset Use,” this range has up dramatically since before 2020, once the figure was solely around 3%. 

The latest data from JPMorgan comes from analyzing bank account transfers from a sample of over 5 million customers. It found that 600,000 customers in this sample cluster transferred money to crypto accounts at some purpose during period from 2020 to 2022. 

The study also noted that cryptocurrency holders typically made their first crypto purchases during spikes in crypto prices. throughout now, the amount of cash being sent into crypto exchange accounts usually so much outweigh the cash being removed. In alternative words, the majority were holding onto their crypto throughout now amount. 

This modified in early 2022 as crypto costs fell, according to JPMorgan. In recent months, money transfers into crypto exchanges have solely slightly exceeded cash transfers out of them. 

JPMorgan says that this is a result of each value declines in crypto and a broader trend of the savings rate declining within the united states since the pandemic: 

“We read the increase and fall of crypto use since the onset of COVID as in line with the joint relationship between retail flows and market costs seen in previous research. additionally, the trend in crypto flows additionally tracks dynamics of home savings, that spiked to historic highs early within the pandemic however has begun to reverse.” 

Who's buying?

The report also weighed in on whether bound demographic teams are more likely to shop for crypto. It found that men of all ages obtain significantly more crypto than ladies, which younger folks obtain significantly over older people. for example, the report found that over 12% men have bought crypto, whereas solely around 12-tone system of millennian ladies and 5% of male baby boomers have. 

A breakdown of crypto ownership by demographic. Source: JP Morgan Chase

The analysis additionally found that crypto holdings were comparatively minor for many people, with median flows up to but one week’s value of take-home pay.  

On the opposite hand, concerning 15% of crypto house owners had over a month’s pay invested with in crypto. 

The crypto market has gone through a dramatic fall in 2022. Bitcoin has fallen from a 2022 high of $47,459 in March to $17,208 at the time of writing, whereas Ether has fallen from $3,521 in April to $1,273 at the time of writing. 

This fall within the crypto market has been the results of market shocks like TerraUSD (UST) stablecoin losing its peg in might and crypto exchange FTX going bankrupt in November. 

Trading fees have fallen on several crypto exchanges, and C its revenue has fallen by nearly 50%. 

But despite this decline in crypto costs and mercantilism activity, this new report indicates that crypto possession has still increased over the course of the previous few years. 

( Tom Blackstone, cointelegraph, 2022 )