Bear Market, Luna Crash, FTX Meltdown: How it Impacted Crypto’s Public Perception (Survey)

A recent study conducted by CNBC estimated that only 8% of American participants currently have a favorable view of cryptocurrencies.

Those who supported the asset class in March 2022 were 19%. The market has been through a lot since then – the prices plummeted, the Terra ecosystem crashed, and FTX filed for bankruptcy.

Change of Trends

43% of the US participants in CNBC’s “All-America Economic Survey” said they have a negative view of digital currencies, while this figure was 25% nine months ago. The proponents of the asset class have shrunk to 8%, down from 19%, and 18% feel neutral. 

Despite the results, 24% of the respondents admitted having invested, traded, or used crypto in the past (up 6% from the March results).

17% of those who have allocated some of their wealth in bitcoin or altcoins have a “very negative” stance, while 47% of the non-investors showed such an attitude.

The increased criticism could be a result of the numerous adverse events that the world of crypto endured throughout the ongoing year, with Terra’s collapse and the crash of FTX being some of them. Former giants like Celsius, Three Arrows Capital, BlockFi, and many others filed for bankruptcy, while the global crypto market capitalization has slipped below $1 trillion.

The rise of negativity toward cryptocurrencies coincides with record-low confidence in stocks. Only 26% of the participants believe now is the right moment to invest in equities which is the most pessimistic level in the 15-year history of the research. 51% think they should stay away.

Young Americans are More Supportive

A survey carried out by Bank of America estimated that 75% of American respondents aged 21-42 believe it is impossible to achieve above-average returns relying only on traditional finance. They think crypto should be one of the instruments to diversify with.

32% of the older individuals share the same stance but prefer to invest their funds in equities. Just 5% of those above 42 years old have hopped on the cryptocurrency bandwagon.

The research further informed that 68% of the polled parents have already had an educational discussion with their children on how to transfer the family wealth to them. Generation X and Millennials are expected to inherit around $84 trillion by 2045.

Those two demographic groups have been among the most active on the crypto scene. A research conducted in 2021 showed that 47% of Millennial millionaires have invested at least a quarter of their total funds in bitcoin or alternative coins. 36% said they would like to receive some of their salaries in digital currencies instead of fiat.