Bank of America Loses Half Of Its Active Cryptocurrency Users
Bank of America’s active cryptocurrency users have dropped by more than half since the peak of the cryptocurrency bull market, as cryptocurrency values collapse and Bitcoin endures its worst quarter in more than a decade.
According to Bloomberg, Bank of America‘s cryptocurrency users fell below 500,000 in May, down from more than 1 million in November of last year, when cryptocurrency values were hitting new highs and the total market capitalization of the area was well beyond $1 trillion.
Bitcoin’s price has now fallen from an all-time high of a near $70,000 to roughly $19,000 at the time of writing, in what the bank described as a “grave decline” in cryptocurrency values.
Bank of America examined anonymized internal customer data that revealed the number of clients that invested in crypto assets by sending or receiving payments to or from a cryptocurrency platform to determine the number of cryptocurrency investors utilizing its platform.
The data did not reveal specific transactions, nor did it provide a full snapshot of all cryptocurrency users. Crypto asset prices have fallen in recent months as central banks around the world tighten monetary policy to combat inflation.
As a result, the flagship cryptocurrency Bitcoin has had its worst quarterly performance in more than a decade, losing nearly 58% of its value in the second quarter of this year, falling from $45,524 to just under $19,000 at the end of the three-month period.
Prices fell along with investor sentiment toward cryptoassets, with Bank of America reporting a surge from 21% to 30% between April and June in investors indicating they haven’t invested in cryptocurrency and have no plans to do so.
The bank observed that cryptocurrencies account for less than 1% of total household financial assets in the United States, implying that “relatively few people view crypto assets as a reliable long-term investment.”
According to the most recent edition of CryptoCompare Research’s “Digital Asset Management Review,” despite the current crypto bear market, one Bitcoin ETP’s assets under management (AUM) reached an all-time high in June.
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