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Crypto engagement fell to 7% among US adults in 2023, Fed finds
A Federal Reserve survey has indicated a decline in cryptocurrency use among American adults, with only 7% expected to use or hold digital assets in 2023.
The Survey of Household Economics and Decisionmaking (SHED), conducted in October 2023, revealed that the number of adults involved with cryptocurrency fell to 18 million, down from 10% in 2022 and 12% in 2021.
The survey also found that only 1% of adults use cryptocurrencies for financial transactions, a 50% decrease from the previous year.
Despite the observed decline in the use of cryptocurrencies, the digital asset sector continues to exert influence in other sectors, such as politics.
Public opinion polls indicate that American voters expect presidential candidates to have an understanding of emerging technologies, including artificial intelligence and cryptocurrency.
Second According to Coinbase, California cryptocurrency owners have the potential to influence the outcome of the 2024 election
While the Fed’s findings suggest a decline in interest in cryptocurrencies as both an investment option and a means of transaction, it’s worth noting that the cryptocurrency market has reversed course this year.
In January, the U.S. Securities and Exchange Commission approved Bitcoin exchange-traded funds after denying the financial instrument a default.
According to data from CoinGecko, at the end of October 2023, the cryptocurrency market was valued at approximately $1.3 trillion.
That value has more than doubled, and the industry’s market capitalization is estimated at $2.675 trillion, as of May 23.