JPMorgan: U.S. crypto market exhibits “herd-like behavior”

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Opinion
JPMorgan: U.S. crypto market exhibits “herd-like behavior”

JPMorgan Chase claims that American investors are typically buying the market’s peak. Moreover, at least 15% of U.S. citizens reportedly traded crypto in 2022.

In new research released on Dec. 13, JPMorgan Chase claims that since the COVID-19 pandemic started, the crypto adoption level has grown. By the middle of 2022, 15% of Americans had made transfers into crypto accounts.

According to JPMorgan, investors in the U.S. crypto market have shown “herd-like behavior” by buying the market’s peak. The research reads:

“A wide variety of American households made deposits into crypto assets while they were trading around their maximum levels.”

“The Dynamics and Demographics of U.S. Household Crypto-Asset Use,” JPMorgan

Analysts claim that most U.S. crypto investors likely faced severe losses as the bear market prevailed in late 2022. The COVID-19 pandemic was the critical impetus that pushed nearly 15% of the country’s households into investing in cryptocurrency, based on a survey with a sample size of roughly 5 million active checking account clients.

Another key finding is that the percentage of people who have moved money into a crypto-related account has increased from 3% before 2020 to 13% by June 2022.

However, these transfers did not surpass median flows equal to less than one week’s worth of take-home pay, indicating that the average person’s crypto holdings were minimal. Generally, between 2015 to the first half of 2022, the average gross amount transferred to cryptocurrency accounts was around $620.

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Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile writer and researcher. He has keen interest in blockchain technology, cryptocurrencies, NFTs, Web3, metaverse, fintech and emerging technologies. He has tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids.