Bank of America’s Active Crypto Users Drop More Than 50% in Bear Market – Featured Bitcoin News

Bank of America announced that 50% of customers are now active users of crypto, a drop of more than 50% since November 2017, when it was at its highest. In addition, the bank said its data “shows that outflows to crypto platforms have fallen sharply,” indicating that “consumers are pulling back on their net investment into crypto platforms.”

Bank of America’s Active Crypto Users

Bank of America released a report last Wednesday showing that cryptocurrency usage has fallen sharply since November 2017, when it was at its highest. It explained that:

Anonymized Bank of America customer data shows that there has been a dramatic drop in active crypto users, more than half a million from November 2021’s peak of 1,000,000 users to less than 500,000 by May.

“We also found that ‘first time’ users, customers who made a transaction with a crypto platform having not made one previously, have also fallen very sharply,” the report adds.

Bank of America also noted that only 33,000 crypto-transactions were made in May by clients, which is an 87% decrease compared with the 267,000 transactions in October.

The Bank of America Report details the following:

Also, our data shows that crypto platform outflows have dropped sharply and are roughly equal to inflows. This indicates that crypto platform users are reducing their net investments.

“In dollar terms outflows peaked around $2.9 billion in late 2021, before dropping back to around $1 billion in May 2022,” the bank said.

Bank of America published the June results of its survey, which showed that 91% of the more than 1000 U.S. cryptocurrency investors intend to purchase more assets over the next six-months. A majority of those surveyed said that they used cryptocurrency to pay for their purchases.

The bank’s research team noted at the time: “Overall, our findings suggest that despite the sharp correction in crypto valuations, consumer interest in the sector remains strong.”

What do you think about Bank of America’s data on active crypto users? Please leave your comments below.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.