In 2022, very few people wanted to enter the risky world of cryptocurrency. According to a survey conducted that year, the percentage of U.S. adults owning cryptocurrency stayed flat at 10%, after doubling the two previous years.
With prices of crypto crashing, arrests of crypto kings, and the failure of NFTs, it’s easy to understand why investors were reluctant to invest in digital currency. The researchers from the Federal Reserve Bank of Atlanta speculated that the allure of getting rich quickly via crypto speculation had decreased after the market crash of spring 2022.
The year 2023 has been more favorable for crypto investors. As of Monday, the price of Bitcoin was around $26,521, up from the $16,604 at the end of 2022, though still lower than the peak of $67,617 in November 2021. Despite the lower prices, few investors took advantage of the growth opportunities.
In their analysis, the researchers at the Atlanta Fed noted that crypto speculators tend to buy high and refrain from buying low, which goes against Benjamin Graham’s investing philosophy. This behavior suggests that buyers are feeling “remorse” over their crypto investments.