A study conducted by banking giant Bank of America is revealing a strong interest in crypto assets among US adults.
Bank of America analyst Jason Kupferberg says the survey conducted at the beginning of June among 1,000 respondents in the US shows that approximately 900 indicated they intend to purchase crypto assets before the end of 2022.
“Ninety percent of respondents said that they do plan to buy some amount of crypto in the next six months. And that was actually the same percentage who reported having actually bought some crypto over the prior six months, for example.”
According to the analyst, the number of crypto assets and exchanges is “too many” and is akin to the number of internet companies prior to the bursting of the dot-com bubble over two decades ago.
“The reality is our view has been there are too many crypto exchanges, there are too many cryptocurrencies and tokens. There’s going to need to be some amount of consolidation.
Perhaps it’s a little bit analogous to back into the dot-com era when there were too many dot-com stocks and then there was a big shakeout and then there were clearly some really significant dot-com companies that became extremely successful.
So we think there’s some element to that in what we’re seeing here, we do think a company like Coinbase stands out as being a lot larger, a lot more stable.”
Kupferberg further says Bitcoin (BTC) has demonstrated a strong correlation with risk assets such as high-growth tech stocks.
“[Bitcoin] seems [like] it’s been correlating pretty strongly with risk assets in general. For example, with high-growth tech stocks.
If you look at the charts on crypto versus some of those names, they’ve looked very similar since November of 2021. So, that’s what we’re observing at this point.
And I think today’s an example where obviously there’s some bad headlines. Not surprising to see another leg down for crypto stocks and Bitcoin itself.”
Bitcoin is trading for $21,988 at time of writing, a level last reached in November of 2020.