Bank of America’s crypto users fall by more than 50%

Investment bank’s crypto users dipped to 500,000 in May from a million last year

Bank of America                                 
The decline in users indicates consumers are pulling back on investments or are too afraid to invest during a volatile market – Photo: Shutterstock
                                

The number of crypto users at Bank of America has declined by more than 50% as Bitcoin continued its downward trend, losing more than 60% of value since last year and posting its worst quarter in years.

The bank’s latest crypto report shows that its users dropped below the 500,000 mark in May, from more than one million users in November last year. 

The decline shows a significant downward trend of crypto users as well as an overall sell-off mood where consumers are either pulling back on their net investments or are too afraid of investing during a volatile market. 

Crypto market valuation

As of 7 July, Bitcoin slipped below the $21,000 level and was trading around $20,500 earlier today. It’s current price is in stark contrast to its peak last year, which saw the cryptocurrency reach an all-time high of $68,789.63 on 10 November after starting 2021 at just under $30,000.

The crypto industry as a whole also grew to a total market cap of more than $2trn last year, from which it has fallen to $895.5bn earlier today.

According to U.Today, analysts and investors are expecting Bitcoin to remain under pressure as a result of the US Federal Reserve’s monetary policy that aims to bring down inflation.

Last month, the Fed raised its benchmark interest rate by three quarters of a percentage point — the biggest hike since 1994 – in a bid to halt rising inflation rates in the US.

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