Momentive study: Americans sour on crypto

TECHNOLOGY

Momentive study: Americans sour on crypto

As crypto values crater, just 13% of Americans say now is a "good time to buy”.

Sam Gutierrez

June 28, 2022 | 4 min read

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Key findings

  • Recent stock market declines have most Americans concerned about the economy, with a majority also pointing to inflation as the main cause of the bear market.
  • As crypto values crater, just 13% of Americans say now is a "good time to buy”.
  • Coinbase sees an increase in adoption from the previous year, while users flee Robinhood.
  • Younger investors overwhelmingly prefer to manage investments via mobile.

Recent stock market declines have most Americans concerned about the economy

More than two in three (69%) U.S. adults are ‘very’ or ‘somewhat’ concerned about the recent stock market decline, with older Americans slightly more worried than younger generations:

  • 72% of Gen Xers, Boomers, and the Silent generation are concerned, compared with 67% of Gen Zers 64% of Millennials.

Concerns over the impact of the decline also differ by generational cohort. While the economy is the leading area of concern for all age groups, Gen Z and Millennials are more likely to be worried about the bear market’s impact on the housing and job market:

  • 56% of Americans overall say they are most concerned about the economy when it comes to the recent stock market decline, followed by personal finances (43%), the value of their investments (34%), the housing market (31%), and the job market (25%).
  • Despite being less of a concern overall, the housing and job market are greater concerns for younger generations: more than 4 in 10 Gen Zers (44%) and Millennials (42%) are concerned about the housing market, compared with 29% of Gen Xers and 18% of Boomers/Silent generation.
  • Similarly, Gen Zers and Millennials are at least 1.5 times more likely to be concerned about the job market than Gen Xers (39% and 34% vs. 25%).

Most blame inflation for recent stock market woes

The majority (60%) of Americans view inflation as the leading cause of the bear market. Another 4 in 10 attribute blame supply chain issues (41%) and the Russia-Ukraine crisis (38%), while a minority view the recent interest rate hikes (27%), Covid-19 stimulus packages (23%), or the Covid-19 lockdown in China (16%) as root causes for the declines. 

Expectations for a quick rebound are low: less than one in ten (8%) Americans think the stock market will return to 2021 highs within a year, while most expect a bounceback within one to two years (34%) or three to five years (35%). Only a small minority (12%) believe it will take more than five years, and an even smaller minority (6%) do not believe stock prices will ever return to pandemic highs.

As crypto values crater, just 13% of Americans say now is a "good time to buy”

Most Americans are shying away from investing in crypto, as 43% think it is too risky to buy, and a similar percentage (42%) are unsure. 

  • Younger generations are more optimistic about crypto’s future, with one in four (25%) Gen Zers and one in five (19%) Millennials saying that now is a good time to buy the dip, compared with 12% of Gen Xers and 4% of Boomers/Silent generation.

Crypto owners, however, are holding on to their coins, and among the rest more are planning to buy than sell in the next six months.

  • The majority (59%) plan on holding onto their crypto investments in the next six months, while more than one in four (27%) expect to buy.
  • Only roughly one in ten (11%) plan on selling.

Coinbase sees an increase in adoption from the previous year, while users flee Robinhood

Robinhood’s lead among mobile investing apps has diminished from the previous year, dropping 7 percentage points from 28% in 2021 to 21% in 2022. While still among the lead, Coinbase has climbed from 14% in 2021 to 19% in 2022 to be virtually on par with Robinhood. 

  • Younger investors are driving the change: Currently, only 40% of investors aged 18-34 use Robinhood, down from more than half (53%) from the previous year. Investors age 35-64 and 65+ see a much smaller drop (-4pp and -3pp).
  • Coinbase’s 5 percentage point increase is driven by both younger and middle-aged investors (+7pp for 18-34 and +6pp for 35-64).

Gen Z and Millennial investors are much less reliant on brokers when it comes to managing their investments, rather opting for self-service mobile apps.

  • Two in three Gen Z (66%) and Millennial (68%) investors use a self-service mobile app to manage their investments, compared with less than half (48%) of Gen X investors and 16% of Boomer/Silent generation investors.
  • Desktop usage remains similar across all age groups, with nearly one in three investors accessing and managing investments via a laptop or desktop.
  • Only one in five Gen Z (19%) and Millennial (22%) investors rely on an investment broker, compared to 36% of Gen Xers and 58% of Boomers/Silent generation.

Read more about our polling methodology here

Click through all the results in the interactive toplines below:

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