A survey by the Financial Industry Regulatory Authority shows that U.S. investors are not considering buying cryptocurrencies as much as they used to because their risk-taking behavior has decreased.
The percentage of crypto investors remained unchanged at 27% from 2021 to 2024, but the number of investors considering additional or first-time purchases fell from 33% in 2021 to 26% in 2024, FINRA reported on Thursday.
The industry regulator revealed that investors with a “high level of investment risk” fell by four points to 8% between 2021 and 2024. The biggest decline was among investors under 35, which fell 9 percentage points to 15%.
Since our last survey in 2024, investment in cryptocurrencies has remained stable, although the number of investors considering adding cryptocurrencies to their portfolios has declined. sauce: finra
Cryptocurrency investment typically surges during times of optimism in the broader macroeconomic environment, but uncertainty surrounding interest rates, inflation and the economy is likely causing investors to turn to assets that appear to be safer.
Despite its risks, cryptocurrencies are reported to be an important tool for achieving financial goals
FINRA’s survey was conducted from July to December 2024 in an online state-by-state survey of 2,861 U.S. investors and 25,539 adults. It found that 66% of respondents called cryptocurrencies a risky investment, up from 58% in 2021.
However, a third of investors said they believed they needed to take greater risks to achieve their financial goals, rising to 50% of respondents under 35.
About 13% of investors, including nearly one-third of individuals under 25, also reported buying meme stocks and other viral investments.
Related: Wall Street doesn’t need to be nervous about Bitcoin’s ups and downs: pomp and circumstance
The pace of new investors slows down
The pace of investors entering the market has also slowed compared to 2021. Only 8% of investors reported entering the market in the past two years to 2024, compared to 21% in 2021.
“As reported in the 2021 NFCS, the surge in young investors who entered the market early in the pandemic reversed direction once the pandemic ended, with the share of U.S. adults under 35 investing returning to 2018 levels,” FINRA noted.
Overall, FINRA found that the results indicate a “moderate trend toward more cautious attitudes and actions” compared to the 2021 survey.
magazine: The big question: Did a time-traveling AI invent Bitcoin?
