Crypto owners remain committed to bitcoin despite market turmoil, Morning Consult says

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Cryptocurrency investors in the U.S. are still fond of bitcoin (BTC-USD) despite its massive drawdown of around 65% from its November peak amid a broader flight from risk.

"Headlines about institutional investors’ liquidating their positions and asset prices tanking may scare the regular retail investor, but once again, crypto owners are proving to be a different kind of risk taker," Morning Consult reported, citing 4.4K respondents of a survey that took place as bitcoin (BTC-USD) fell below $20K on June 18. "Instead of shedding assets, U.S. cryptocurrency owners are buckling down and preparing to hibernate for a crypto winter."

While downbeat crypto-related headlines have been taking the spotlight in recent months, 19% of U.S. adults said they own a crypto, and 14% reported owning only bitcoin (BTC-USD) as of mid-June. Both shares were the same in January, according to Morning Consult.

Still, as the crypto downturn sets in, crypto owners' six-month price predictions for bitcoin (BTC-USD) has dropped to $37,895 in June from $45,732 in May and $49,779 in January, the monthly survey said. Bitcoin (+1.2%) is rising slightly to $19.3K as of shortly before 1:00 p.m. on Friday

Furthermore, consumers are increasingly losing trust in prominent crypto-related firms like Coinbase Global (NASDAQ:COIN), Binance and FTX, as "these companies are too young to have established long-term relationships with consumers (or stores of goodwill) and have yet to sufficiently differentiate themselves from one another," Morning Consult said.

On the transaction front, 28% of bitcoin (BTC-USD) owners said they bought the crypto in the past month, down six percentage points from February, as per the survey. For June, 71% said they intend to buy bitcoin compared with 76% in February.

"Although currently modest, this softened transaction behavior could intensify if inflation and interest rate hikes continue to put downward pressure on bitcoin’s price and tap consumers’ dwindling discretionary income (leaving them unable to “buy the dip”)," Morning Consult warned.

In the cryptoverse, token prices are tanking as liquidity keeps shrinking and financial conditions further deteriorate. The slump in crypto intensified after the collapse of algorithmic stablecoin TerraUST (UST-USD) after it de-pegged from the U.S. dollar, wiping out tens of billions in value. That event was followed by Celsius Network's meltdown after the crypto lender paused all customer withdrawals, swaps and transfers. The fall of crypto-focused hedge fund Three Arrows Capital came shortly thereafter.

Previously, (June 30) Mark Newton, head of Technical Strategy at FSInsight, said bitcoin may bottom in July as weekly and monthly charts signal a possible trend reversal.

Comments

[clrodrick]

The comments from the peanut gallery amuse me. Similar to comments made the past 4 crypto winters ... then silence once crypto bottoms and starts skyrocketing back up to easily eclipse previous highs. Some people just like being wrong over and over and over I guess. Makes no sense to me, guess that is part of the cognitive dissonance.

[John Poorer]

@clrodrick In my country, there are four seasons. Not just one permanent winter. I’m not into crypto because I don’t like to lose money when it comes to investments.

[clrodrick]

@John Poorer Bitcoin goes through all 4 seasons, not sure what you mean. Every investment goes through winters from real estate to fixed income to stocks to everything else. If you don't like to lose money when it comes to investments you must own nothing but cash (but oops it is losing to inflation!)

[ippotr]

@clrodrick so you are saying it trades like a stock

[clrodrick]

It's almost like nobody has gone through a crypto winter before? People need to take a chill pill, turn off the electronic screen showing the spot price and just get back to living life and enjoying each day again and check back on bitcoin spot price in a year or so. If one has spare capital to put to use go ahead and put in a few stink bid limit buy orders around $12,000 - $15,000 as it could get that low. Other than that just chill out the world is not coming to an end.

[Michael Bryant]

@clrodrick

I wouldn't wait a year. It took a little less than a year for $BTC-USD to plunge 83% from its December 17, 2017 high to its 2018 low. If the current peak was in early November 2021, it has already been eight months. That means $BTC-USD may bottom in three-four months (September-October).

[clrodrick]

@Michael Bryant What I meant to say is anybody holding (and worrying) about bitcoin/ether should just take a year off and check again. I'm guessing the spot price will be much higher in July 2023. Between now and then the low for sure will be in which is why I put in a few stink bids to see how low I can accumulate a bit more. I'm not personally worried though.

[Gadzman_33]

As long as enough people believe in a asset that was designed out of nowhere , and not tangible, can keep going up in value , then the fantasy game continues !! Bitcoin to under $10k by year end is my prediction?

[tech7]

'Crypto owners remain committed to bitcoin despite market turmoil, Morning Consult says'

Long bitcoin at MUCH higher prices........Duh!

[Blowback2]

‘Crypto owners remain committed .’ There, fixed the title. Hope the in-house therapy works…….

[Growth Movement]

If most crypto ‘investors’ were holding, the price would be flat or rising - not falling through the floor.

[leonlai911]

LOL! All it took was a couple of months' worth of hikes to completely derail crypto. Imagine what a Volcker style situation would do to this "economy"

[Blowback2]

‘Headlines’ about some people ‘losing’ at Russian Roulette may scare some ….but not me. Still willing to bet with 5 loaded chambers in the 6 shooter ….’

[Moomoo22u2]

@Blowback2 that’s some really sound “investment” acumen.

[Blowback2]

@Moomoo22u2 Thought the ‘sarc’ emoji wouldn’t be needed…..

[Moomoo22u2]

Where is the next crop of greater fools coming from?

[Michael Bryant]

"19% of U.S. adults said they own a crypto, and 14% reported owning only bitcoin ($BTC-USD) as of mid-June..."

Nice. $BTC-USD seems to be becoming slowly adopted. "Gallup finds 58% of Americans reporting that they own stock, based on its April Economy and Personal Finance survey." news.gallup.com/... Thus about 1/3 of Americans who own stocks probably also own crypto.

[ippotr]

@Michael Bryant most Americans are dumb. Some love socialism some think guns are the answer. And we think cryto is the future. Lol. We are doomed.

[Blowback2]

@Michael Bryant
It was a typo. ‘Bacon’…….

[ippotr]

“Different kind of risk taker”. I thought it was a sure thing.?

[azarlee]

Well I bought in at 500/BTC…..so still cool…..

[Winnertakesall]

What else are they going to do, most are deep in the red. Most are just praying that their spouses don't find out how much they lost. Crypto is just a toxic ponzi.

[treespace]

The big "tell" for the slow to catch on laggards was the "stable" Miami Coin fiasco.

They hired top talent from the sports and entertainment world, spent millions on advertising, held big splashy conventions, invited experts from around the world, put in place first class planning and financial analysis, sold it to the city of Miami and its citizens, then unleashed the 12,000th crypto token fork for a dollar a piece.

Current valuation for the bag holders who took the bait:

MIA-USD: $0.000644 per token

Effectively zero even if you bought it at 100 for a dollar, you were wiped out.

www.youtube.com/...

[Blowback2]

@treespace
Maybe. My broker , J. Cramer, at Lehman says to ‘keep the faith’….

[Philip Marlowe]

Seeking alpha is a bit behind. Another collapse just happened -- Peter Thiel and Coinbase backed crypto lender Vauld just said they have suspended withdrawals and are hiring restructuring lawyers.

[treespace]

@Philip Marlowe I think we just need to get used to the new banking model where the bank locks the door and stops answering the phone when they become insolvent.

Those fancy big banks with their FDIC insurance and annual "stress" tests are so last century. I wish I could open a bank tomorrow and start taking deposits, and buying bitcoin with it, but I can't because of all those pesky "regulations" and stuff.

[Blowback2]

@Philip Marlowe Have a link? Not that I care about the story; just interested in any comments. Some of my best laughs in awhile….

[TastyLaksa]

@Philip Marlowe I still remember during the financial crisis in 2008 when we couldn't withdraw money from our banks. Crypto is just the same! (I kid we always could withdraw our money)

[Et20]

Not everyone bought at 65k. My average is about 20k

[treespace]

@Et20 So you stand to lose $20K per token versus $65K. Nice work.

[Winnertakesall]

@Et20 What will you do if in a week it drops to 10k? Then a few months later it drops to 6k? Do you have a plan?

[Et20]

@Winnertakesall

You can find my reply in another thread below

seekingalpha.com/...

[tech7]

Good Forbes article

apple.news/...

[scott7122]

I’m waiting for Mooch to go on CNBC and call a buying opportunity.

[treespace]

@scott7122 Only after he regurgitates the block chain talking points while simultaneously dodging any and all objective analysis.

[appledoc]

If the crypto crowd is really still this bullish, there’s a long way to go before the bottom is reached.

[TastyLaksa]

@appledoc It convinced me its not too late to short bitcoin.

[jeffk100]

65k to 19k? Committed. Sure thing.