According to a study by the FINRA Investor Education Foundation, US investors' enthusiasm for crypto has cooled. Indeed, only 26% of investors still plan to buy cryptos, compared to 33% in 2021. However, 27% still hold them, an unchanged level. We are seeing less desire to buy more, but not necessarily a massive release.
In brief
- 27% of US investors still hold cryptocurrencies, but only 26% plan to buy them, compared to 33% in 2021
- The share of investors willing to take big risks drops from 12% to 8%, with a marked drop among those under 35
The decline in enthusiasm: a trend that goes beyond crypto
A FINRA study finds that only 26% of U.S. investors are still considering purchasing digital assets, down from 33% three years ago. However, 27% still have them.
This paradox says a lot. They don't sell, but they don't accelerate anymore. The fever of the pandemic years has subsided, taking with it the enthusiastic entries that had exploded in 2021.
The slowdown is visible everywhere, but it especially hits newcomers. Only 8% of investors started investing recently, compared to 21% in the previous period. Young adults, once the driving forces of the crypto wave, are the most affected: their participation rate falls from 32% to 26%. Some of them have clearly jumped ship after the market roller coaster.
And it’s not just crypto that’s in decline. All investments considered risky are losing popularity. The study recalls that 66% of people familiar with digital assets now consider them very risky. A sign of maturity or lasting concern.
More cautious investors but still attracted by risk
What is intriguing is the contradiction at the heart of the behavior of young Americans. Their risk tolerance decreases. In fact, only 15% of those under 35 say they are ready to accept large fluctuations in their portfolio, compared to 24% previously.
However, 62% recognize that they will have to take risks to achieve their goals. Two speeches, two realities. Because on the ground, the caution displayed sometimes resembles an announcement effect.
Young people remain the most active in aggressive strategies. In fact, 43% trade options, 22% use margin, and nearly a third buy meme stocks.
Despite this apparent decline, crypto continues to gain ground in American society. More than 50 million adults now own digital assets.
Crypto therefore does not disappear from their universe. It is rather part of a set of speculative bets where the desire to do better than the market remains strong, despite a more cautious facade.
Social networks, influencers and false promises: still fragile ground
FINRA points to another phenomenon that is impossible to ignore. This is about the growing influence of social networks in shaping financial decisions. Among those under 35, 61% now rely on influencers to guide their investments. YouTube dominates, TikTok is growing, and advice from friends now exceeds advice from professionals.
This very spontaneous mode of information maintains a climate where crypto circulates as much as a trend as a considered investment. As a result, the risk of being trapped remains high.
Nearly half of investors say they are ready to believe in an offer promising a 25% guaranteed return. This is indeed a typical scenario for crypto scams. And yet, 89% believe they have never been targeted by fraud. Confidence remains high, sometimes too much.
This vulnerability pushes FINRA to emphasize a key point. Indeed, financial education becomes essential if we want to prevent the next waves of crypto adoption from being to the detriment of the youngest and least equipped investors.
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