US investors are exhibiting reduced interest in cryptocurrency purchases, as risk-taking tendencies have diminished, according to a study released by the Financial Industry Regulatory Authority (FINRA).
The proportion of crypto investors remained static at 27% from 2021 to 2024, while the share of those contemplating buying more or investing for the first time fell to 26% in 2024 from 33% in 2021, as reported by FINRA on Thursday.
The regulatory body discovered a decline of four percentage points in those willing to take “high levels of investment risk,” dropping to 8% between 2021 and 2024. The most significant decrease was noted among investors under 35, which saw a drop of nine percentage points to 15%.
Investment in crypto usually increases during phases of broad economic optimism, but prevailing uncertainties regarding interest rates, inflation, and the overall economy appear to have led investors to prefer perceived safer assets.
Crypto viewed as risky yet essential for financial aspirations
According to FINRA’s study, which took place from July to December 2024 with 2,861 US investors and a state-by-state online survey of 25,539 adults, 66% of participants identified crypto as a risky investment, a rise from 58% in 2021.
Nevertheless, one-third of investors expressed that they needed to take significant risks to achieve their financial objectives, increasing to 50% among respondents aged 35 and younger.
Approximately 13% of investors, including nearly one-third of individuals under 25, reported engaging in meme stocks and other viral investments.
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Decline in new investor activity
The influx of new investors into markets has also slowed compared to 2021. Only 8% of investors indicated that they entered the market in the two years leading up to 2024, down from 21% in 2021.
“The wave of younger investors that joined the market early in the pandemic, as noted in the 2021 NFCS, has reversed as the pandemic subsided, bringing the percentage of US adults under 35 investing back to 2018 levels,” FINRA stated.
Overall, FINRA concluded that the findings reflect a “slight trend toward more cautious attitudes and behaviors” in comparison to the 2021 survey.
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