Bank of America revealed that the number of customers who are active crypto users has dropped more than 50% from its peak last November. In addition, the bank said its data “shows a sharp decline in outflows to crypto platforms” and that “consumers are pulling back their net investment in crypto platforms.”
Bank of America’s active crypto users
Bank of America released a report last week showing a sharp decline in the number of active cryptocurrency users from last November’s peak. The bank explained that.
Anonymized Bank of America internal customer data shows a sharp, over 50% decline in the number of active crypto users from a peak of over 1 million users in November 2021 to under 500,000 in May.
“We also found that ‘first-time’ users, customers who have done a transaction with a crypto platform that has never made one before, have also fallen very sharply,” the report adds.
Bank of America further noted that only about 33,000 clients transacted in crypto for the first time in May, down 87% from 267,000 first-time users last October.
In addition, the Bank of America report details.
Our data shows that outflows to crypto platforms have likewise declined sharply and are now roughly equal to inflows, indicating that consumers are pulling back their net investment in crypto platforms.
“Outflows in dollar terms peaked at about $2.9 billion in late 2021 and then declined to about $1 billion in May 2022,” the bank said.
In June, Bank of America released a survey showing that 91% of more than 1,000 U.S. crypto investors plan to purchase more digital assets over the next six months. Additionally, nearly 40% of respondents indicated that they use cryptocurrencies as a means of payment.
The bank’s research team noted at the time that ” Overall, our findings suggest that despite the sharp correction in the valuation of crypto, consumer interest in this area remains strong.”
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