Bank of America loses 50% of its active cryptocurrencies as Bitcoin puts out the worst quarter of a decade

by Arthur · July 5, 2022

The number of active cryptocurrency users in Bank of America has fallen by more than 50% from the top below the height of the cryptocurrency bull market as cryptocurrency prices plummet and Bitcoin puts out its worst quarter in more than a decade.

According to Bloomberg, the bank’s cryptocurrency users fell below the 500,000 mark in May, from more than 1 million users back in November last year when cryptocurrency prices reached new heights and the room’s total market value was well over $ 1 trillion.

Bitcoin’s price has since fallen from an almost $ 70,000 all-time high to around $ 19,000 at the time of writing as the bank called a “severe decline” in cryptocurrency prices.

To find the number of cryptocurrency investors using their platform, Bank of America looked at anonymous internal customer data that showed the number of customers who made investments in cryptocurrencies by sending or receiving payments to or from a cryptocurrency platform.

The data did not show which specific transactions were made, nor does it provide a comprehensive overview of all users of cryptocurrency. Cryptocurrencies have fallen in recent months as central banks around the world tighten monetary policy to curb inflation.

As a result, the price of the flagship cryptocurrency Bitcoin has given its worst quarterly result in more than a decade, as it lost around 58% of its value in the second quarter of this year, going from $ 45,524 to just under $ 19,000 at the end. of the three-month period.

Prices coincided with sentiment towards cryptocurrencies, and between April and June Bank of America saw an increase from 21% to 30% in investors who said they had not invested in the cryptocurrency area and had no plans to do so.

The bank noted that cryptocurrencies make up less than 1% of total U.S. household financial assets, suggesting that “relatively few people view cryptocurrencies as a reliable long-term investment.”

According to the latest issue of CryptoCompare Research’s “Digital Asset Management Review”, in June, a Bitcoin ETP’s assets under management (AUM) managed to reach a record high level despite the current crypto bear market.

21Shares Short Bitcoin ETP (SBTC), which “seeks to provide a -1x return on Bitcoin performance for a single day,” saw a 30-day return of 30.8% according to CryptoCompare, making it the third month on row where the Product’s assets under management have increased, setting a new record of $ 16.5 million this month.