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As per JPMorgan, 13 percent of people in the U.S. have held crypto at some point

600,000 people in the United States transferred money to their crypto accounts at some point between 2020 and 2022

Shashank Bhardwaj
Published: Dec 13, 2022 02:33:31 PM IST
Updated: Dec 13, 2022 03:47:20 PM IST

As per JPMorgan, 13 percent of people in the U.S. have held crypto at some pointImage: Shutterstock

As per a 13 December report by JPMorgan Chase titled, “The Dynamics and Demographics of U.S. Household Crypto-Asset Use,” about 13 percent of people in the U.S., or to say about 43 million American people, have bought crypto at some point in their lives.

The percentage of people holding crypto in the U.S. has risen exponentially since 2020 when it was just 3 percent.

JPMorgan obtained this data by analysing the account transfers from a sample of more than 5 million customers, out of which around 600,000 customers transferred money to crypto accounts at some point between 2020 and 2022.

The study also showed that customers usually bought their first crypto when there was a spike in crypto prices. The amount of money being sent into crypto exchanges was much more than the amount being withdrawn during these times, and hence the prices kept going up.

The trend reversal came in 2022 when the price of cryptos started falling. The last few months have seen that money going into the crypto exchanges is not much more than money going out of it. As per JPMorgan, this is because of the savings rate decline in the U.S. since the COVID pandemic, apart from the price declines in crypto.

“We view the rise and fall of crypto use since the onset of COVID as consistent with the joint relationship between retail flows and market prices seen in prior research. Additionally, the trend in crypto flows also tracks dynamics of household savings, which spiked to historic highs early in the pandemic but has begun to reverse,” JPMorgan said.

The report also found that men buy considerably more crypto than women, and younger people buy much more than older people.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash