US investors have cooled toward cryptocurrencies, according to FINRA research

American investors are losing interest in cryptocurrencies amid declining risk appetite, according to a new study by the Financial Industry Regulatory Authority (FINRA). The study finds that while the share of Americans owning cryptocurrencies remained at 27% from 2021 to 2024, the number of investors considering additional assets or making an initial investment fell from 33% to 26%.

Younger Investors Are Retreating

One of the most notable findings of the study is the decline in the share of people with a "high investment risk" level, which fell four percentage points to 8% over the same period. This decline particularly affected investors under 35.

Cryptocurrency investments traditionally rise during periods of macroeconomic optimism. However, current uncertainty about interest rates, inflation, and the overall health of the economy has likely driven investors to safer assets.

Research Results

The FINRA study was conducted from July to December 2024 and surveyed 2,861 U.S. investors, as well as an online survey of 25,539 adults across all states. The results showed that 66% of respondents consider cryptocurrencies a risky investment, an 8% increase from 58% in 2021.

However, a third of investors noted that they believe it is necessary to take greater risks to achieve their financial goals. Among respondents aged 35 and under, this figure rose to 50%. About 13% of investors, including almost a third of those under 25, also reported purchasing memecoins and other similar assets.

Newcomers are coming more slowly

The rate of new investor influx into crypto markets has also slowed compared to 2021. Only 8% of investors reported entering the market in the past two years, compared to 21% in 2021.

>>>> "The influx of young investors who entered the market at the beginning of the pandemic, as reported in studies, has slowed, and this may be due to the overall deterioration of the economic situation," the experts note. <<<<

In Conclusion

Thus, the FINRA study highlights that American investors are becoming more cautious in their investment decisions, particularly regarding cryptocurrencies. The decline in interest among young people and the general perception of cryptocurrencies as risky assets may indicate the need for a more stable and predictable economic environment to restore interest in digital assets.