Bank of America Customers’ Crypto Activity Slowed as Market Slid

The number of active crypto users among Bank of America customers fell by more than 50% to fewer than 500,000 between November and May as the market crumbled from its highs, the bank said in a report Wednesday, citing internal data.

Among the broader population, Bank of America found that sentiment toward cryptocurrencies soured between April and June as the market headed toward a record half-year loss. Surveys of 1,000 people showed 30% of those questioned in June hadn’t invested in crypto and had no plans to do so, up from 21% in April.

First-time users of crypto fell sharply. Only about 33,000 clients conducted a crypto transaction for the first time in May, down 87% from almost 267,000 last October, Bank of America said.

BofA’s data shows that flows into crypto platforms have tumbled as well, and are now broadly equal to flows out, indicating that consumers are pulling back their “net investment in crypto platforms,” it said.

For the one-third of customers who were conducting crypto transactions, the data shows they had only a single transaction, generally for a smaller amount. They account for only 5% of the dollar value of crypto transactions. A considerable 69% of customers who conducted crypto transactions during the COVID-19 pandemic are no longer active, the report added.

Almost 70% of the U.S. population hasn't invested in crypto or isn't interested in investing in cryptocurrencies, the note said, adding that it appears that many consumers haven't participated in crypto markets and if anything their “inclination toward doing so has waned” in recent months.

The bank’s survey suggested that relatively few people view crypto assets as a “reliable long-term investment.”

Read more: Bank of America Says ‘Crypto Winter’ Concerns Haven’t Frozen Investor Interest