Consumer Confidence Higher Among Crypto Owners Than General Population
Consumer confidence among crypto owners is significantly higher than among the general population or average American adults, with crypto owners ranking 16.4 points higher on the buyer sentiment index.
According to a July 7, 2022 report from research firm Morning Consult, while average adult consumer sentiment in the United States (U.S.) has dropped 13.5 percent since mid-January 2022, confidence among crypto owners has held up relatively well, falling only 8.1 percent over the same period.
According to the research firm, the disparity is explained in part by the fact that the average cryptocurrency owner is "more likely to be wealthy, younger, and male" than the average American adult.
Crypto Owners' Consumer Confidence Explained
COPYRIGHT_WI: Published on https://washingtonindependent.com/consumer-confidence/ by Camilo Wood on 2022-07-09T05:05:16.100Z
According to recent research, Millennial men who earn at least $100,000 per year are the most likely to own cryptocurrency, though Gen Z adults also have a high level of crypto ownership.
The report attributes respondents' optimism to their high price expectations for bitcoin (BTC), noting that the average cryptocurrency user expects the price to recover to $38,000 within the next six months.
Despite the fact that some experts believe bitcoin will remain sideways for the foreseeable future and may fall to $16,000, this is the case.
According to the report, price recovery is likely important for the average cryptocurrency holder because the majority of cryptocurrency holders - 66 percent - see cryptocurrencies primarily as a means of earning money rather than sending or paying.
According to the findings, Bitcoin was the most popular cryptocurrency owned by Americans, with 75% of US crypto owners owning cryptocurrencies. It is worth noting that ownership of the stablecoin USD Coin (USDC) and the native token of the Solana blockchain (SOL) has increased by 4% since January.
Furthermore, an increasing number of Americans support strict cryptocurrency regulations. The proportion of Americans who believe the market should be more strictly regulated increased from 17% in January to 21% in June.
The report, titled "The Crypto Report: Our Analysts on the State of Cryptocurrency," compiles data from three surveys. Two surveys were conducted on 2,200 to 4,400 and 6,000 U.S. adults, respectively.
The third survey was conducted monthly in 15 to 17 different countries, and it will be repeated on 1,000 adults per country from June 1-7, 2022.
Crypto Owners' Optimism Despite Recent Volatility
Even as the cryptocurrency market has crashed and burned this year, cryptocurrency enthusiasts have remained steadfast.
Even though consumer confidence has dipped due to rising inflation and falling valuations of financial assets such as cryptocurrencies, crypto holders remain optimistic.
As mentioned earlier, according to Morning Consult, consumer confidence among crypto users is 16.4 points higher than the average American.
They are especially upbeat about the future of their personal finances, with 44.4 percent of cryptocurrency owners expecting their personal finances to improve over the next 12 months in May.
Only 27.1 percent of all U.S. adults and 29.5 percent of high-income adults expected their finances to improve in that timeframe.
According to the report, "this more optimistic mindset may help drive this group to invest in riskier assets like cryptocurrencies." "It could also be due to their cryptocurrency investments."
The Analytics Of Crypto Owners On Consumer Confidence
In just a few years, cryptocurrency has risen from the shadows of the Internet to the forefront. A 2022 study of over 1,000 people in the United States found that current levels of interest and ownership have far outpaced the optimistic 2021 predictions for crypto ownership.
No wonder consumer confidence is high for crypto owners due to the acceleration of people who want to invest in cryptocurrency.
- The number of people who own cryptocurrency has more than doubled in the last year alone: up to 33% of Americans now own cryptocurrencies.
- In our study, nearly half of all crypto investors purchased their first digital currency within the last 15 months.
- Women and older people were more likely to have recently purchased cryptocurrencies than men and young adults who were early adopters.
- The market will only grow in the coming year: 10 million adults in the United States plan to buy in the coming year, and many more plan to buy at some point in the future.
- Half of all cryptocurrency investors have seen their portfolios grow in value, but those who made their first purchase in 2018 or earlier are more likely to have net gains on their crypto investments.
Based on the forecast, nearly half of all crypto owners purchased their digital currencies in 2021 or 2022, and 73% have owned crypto for three years or less.
Early adopters of cryptocurrency tended to be younger adults and men. Individuals with a higher risk tolerance, in other words, jumped into cryptos quickly, without the benefit of historical performance data.
Owners' diversity has increased now that crypto has been recognized as a legitimate asset. Women and older adults, in particular, have recently increased their crypto investments.
Latest Crypto Trading Analysis
Bitcoin and Ethereum Forecast July 8, 2022 | Is Cryptocurrency Still a Good Investment? | DailyForex
Bitcoin prices increased by more than 7% and traded above $21,000 on Friday, July 8, 2022, as the crypto market rebounded sharply.
Bitcoin is on track for its biggest weekly gain since October of last year. The world's largest cryptocurrency by market capitalization was up more than 13% for the week, and if the trend continues, it will be the largest weekly gain since 2021.
The digital token is down more than 56% this year and is trading more than 70% below its all-time high of $69,000 set in November 2021.
Bitcoin is currently worth $21,590.33, a 5.32 percent increase. It reached a high of $22,314.94 and a low of $20,382.89 in the last 24 hours.
Bitcoin currently has a market capitalization of $412,092,344,283. It has a total supply of 19,088,225.00. The maximum supply of BTC coins is 21,000,000 coins.
On the other hand, July has been a good month for Ethereum, with the price rallying by over 15.6% in the past seven days. ETH is the best performer on our list this week, and in the process, it has also formed a large ascending triangle which is a bullish formation. Now, the cryptocurrency is found just under the key resistance level at $1,250.
People Also Ask
What Is Consumer Confidence And Why Is It Important?
Consumer confidence is a leading indicator of the economy. It assesses consumer confidence in the overall state of the economy. It also assesses people's confidence in their financial security. Their economic decisions, such as spending, are influenced by their confidence.
What Determines Consumer Confidence?
Consumer confidence is influenced by the state of the economy and what is reported in the news. Changes in house prices, unemployment rates, and inflation are all factors influencing consumer confidence.
What Makes Crypto Users Optimistic Making Consumer Confidence High?
Part of it stems from youthful optimism. Older Americans are more pessimistic. More of them are on fixed incomes, face health risks, and have negative memories of times of high inflation. Others are confident in the future of digital money.
In conclusion, users of cryptocurrency are actually quite optimistic. In fact, according to Morning Consult's Index of Consumer Sentiment, crypto owners have higher overall consumer confidence than the general population (ICS).
As public awareness of cryptocurrency has grown, investors are flocking to get in on the action. From 2021 to 2022, cryptocurrency ownership more than doubled in the United States, and the industry appears poised for further growth.
With interest growing across all age groups, tax brackets, and genders, survey results indicate that at least 10 million Americans will become crypto owners in the next 12 months. Thus, consumer confidence among Crypto users may skyrocket in no time.