Despite bearish market sentiment, most cryptocurrency holders plan to buy “some amount of crypto” before the end of the year.
A new Bank of America survey shows that interest in cryptocurrencies remains high among Americans, with more than 90% of respondents saying they plan to buy cryptocurrencies within the next six months.
According to Jason Kupferberg, an analyst at Bank of America, the survey was conducted on June 1, after the collapse of Terra Luna. The sample size was 1,000 US adults.
In an interview with CNBC’s ‘TechCheck’, Kupferberg added that the percentage of respondents looking to buy cryptocurrencies was similar to the number they said they bought during the first six months of 2022.
Bitcoin adoption and payments
Regarding the use of Bitcoin and other cryptocurrencies, the bank says that adoption is not very pronounced.
However, with more movement towards payments tied to cryptocurrencies such as Coinbase’s Visa card, connecting with merchants and users is much simpler and more useful to bring new impetus to the industry.
Bank of America also says that the cryptocurrency market is unlikely to see a major shift in the global adoption of many cryptocurrencies and cryptocurrency exchanges. Comparing it to the dot-com era, Kupferberg says it is very likely that some of the projects will die out, before those that survive have wider adoption.
Stock and BTC price correlation
The BofA analyst also noted that Bitcoin remains highly correlated with equities, especially high-growth tech stocks. This lock trade has the price of BTC falling along with market downturns, trending towards a bear market as major stocks sell off.
On Monday, the price of Bitcoin dropped nearly 18%, with negative headlines about the Celsius Network compounding the downward pressure. The BTC/USD pair dropped to a 24-hour low of $22,725.