The current market conditions have not been favorable for many companies in the cryptocurrency sector. However, these market conditions have also affected many investors. In the US, crypto retail investments are still high despite the declining asset prices, but investors are still recording losses.
Crypto crash affects African Americans
The cryptocurrency crash has affected millions of investors in the cryptocurrency market. The bear market has mainly affected black Americans. In the US, 25% of African Americans are believed to own cryptocurrencies. On the other hand, only 15% of their white counterparts own cryptocurrencies.
The young demographic of African Americans has also most likely invested in crypto assets. The survey also showed that 40% of the African Americans aged below 40 owned cryptocurrencies. This was significantly higher compared to the 29% of the white investors that owned these assets.
While cryptocurrency investments among African Americans were high, most of these investors were new to the space and maintained a high level of enthusiasm. 23% of these investors were excited about the crypto space, adding that it was the primary reason they started investing.
Cryptocurrency investments among the black population were also high, as African Americans were three times more likely to have cryptocurrencies as their top investment. Others were two times more likely to classify cryptocurrencies as their best investment. Moreover, African Americans were also less interested in traditional financial investments.
Crypto adoption in the US
Crypto adoption in the United States has been significantly high over the past few months. Despite this growth, the crypto regulatory framework in the country has not been friendly, with the United States Securities and Exchange Commission (SEC) restricting the issuance of products such as spot crypto ETF, citing that they were vulnerable to manipulation.
The US has recorded an uptick in crypto trading activities over the past year. One of the reasons behind the growth is the presence of some of the best exchanges in the space within the US market, such as Binance vs. Coinbase. Moreover, inflation fears have attracted more crypto investments, as people believe crypto outperformed most asset classes.
Some of the largest cryptocurrency exchanges are also located in the United States, with these exchanges competing for users in the large market. Binance US recently announced the launch of zero-fee Bitcoin trading to dominate the US market.
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