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

SHARE THIS ARTICLE

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.
concernseconomy

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”

cryptobuyers

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

mobileinvestingapps

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).
investmentmanage

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:

SEE SIMILAR STORIES IN ...

Read more articles by Momentive

Stay up to date on the trends that are reshaping industries, the innovations that are bringing humanity and technology closer together, and more.

TECHNOLOGY

Momentive NFT tracker

What does the future hold for NFTs? Our quarterly NFT tracker follows the blockchain technology's rise and evolution.

Jan 6 • 3 min read

Read more

EXPERIENCES

Momentive study: half of Americans would consider an EV

Van Westendorp Pricing Analysis shows consumers willing to pay $20,000 - $30,000 for an EV

Dec 1 • 4 min read

Read more