Bear market? Cryptocurrency holders have higher consumer confidence than average U.S. adults

Consumer confidence among cryptocurrency holders is significantly higher than that of the average U.S. adult, with the consumer sentiment index for cryptocurrency holders being 16.4 points higher.

While average consumer sentiment among U.S. adults has fallen 13.5 percent since mid-January, confidence among cryptocurrency holders has held up relatively well, falling only 8.1%.

Part of the reason for the disparity, the research firm said, is that the average cryptocurrency holder is "more likely to be wealthier, younger, and mostly male" than the average U.S. adult.

"Age has been one of the biggest contributors to differences in consumer confidence in recent months, with regular income, health risks and memories of past periods of high inflation in the U.S. leading to more pessimism among older Americans," the report said.

The report noted that millennial males with annual incomes above $100,000 are the most likely to own cryptocurrencies, although Gen Z adults also show considerably higher rates of cryptocurrency ownership. Baby boomers and women remain the least likely group to hold cryptocurrencies.

Respondents’ high price expectations for Bitcoin were one of the drivers of their optimism, the report noted, noting that the average cryptocurrency user expects the price to rebound to $38,000 within the next six months.

Although some experts believe that Bitcoin will remain sideways for the foreseeable future and may drop to $16,000.

According to the report, the price recovery could be important to ordinary cryptocurrency holders, as the majority — 66 percent — see cryptocurrencies primarily as a means of making money, rather than sending them or using them as A means of payment.

According to the report, Bitcoin is the most popular cryptocurrency owned by Americans, with 75% of U.S. cryptocurrency holders owning Bitcoin. Notably, stablecoins USD Coin (USDC) and Solana blockchain native (SOL) have both increased their holdings by 4% since January.

For the most part, Bitcoin is the most popular cryptocurrency owned by Americans, with 75% of U.S. cryptocurrency holders owning Bitcoin.

— Morning Consult (@MorningConsult) July 7, 2022

The report also noted that a growing number of Americans support tougher regulation of the cryptocurrency space. The share of Americans who think markets should be more strictly regulated rose to 21% in June from 17% in January.

The report attributes the increased calls for regulation to the "current environment of heightened volatility" stemming from the collapse of the Terra ecosystem, as well as comments by Janet Yellen addressing the risks associated with the event.

The report, "The Crypto Report: Our Analysts on the State of Cryptocurrency," drew data from three surveys. Two of the surveys surveyed 2,200 to 4,400 and 6,000 U.S. adults, respectively. The third survey was conducted monthly in 15 to 17 different countries and again with 1,000 adults in each country from 1 to 7 June 2022.