Bank Of America Loses Consumers Due To Crypto Market Collapse, How Come?

As the crypto market plummeted, Bank of America lost half of its users. (photo: doc. Ultcoin360)

JAKARTA – One of the leading banks from the United States that opens crypto investment services for its consumers, Bank of America (BoA) has reportedly lost more than 1 million users from November 2021 to 2022.

Based on a Bloomberg report, crypto investors in BoA fell below 500,000 last May. The decline in crypto investors in BoA occurred after the Bitcoin price reached its new high (ATH) in November 2021. The increase in BTC prices has boosted the capitalization of the crypto market as a whole to more than 1 trillion US dollars.

At the time of writing Bitcoin price has fallen 71.1% of its ATH at 69,044 US dollars per BTC. Based on data from Coingecko, Bitcoin is now trading in the price range of 19,000 to 20,000 US dollars. That's why a number of banks are calling the drop in BTC price a big drop in cryptocurrency.

Bank of America has examined anonymous internal customer data to reveal the number of clients investing in crypto assets. BoA examines the data of investors sending or receiving payments to or from crypto platforms to determine the number of investors using its platforms.

However, the data does not reveal specific transactions. Nor does it provide a complete picture of all cryptocurrency users. The reason is that the price of crypto assets has decreased in the last few months. In addition, the central bank also tightened monetary policy to combat inflation.

This condition caused the number one cryptocurrency, Bitcoin, to experience the worst performance in the last decade. BTC lost nearly 58% of its value in the second quarter of the year, dropping from $45,524 to just under $19,000 in the last three months.

Prices fell in tandem with investor sentiment towards crypto assets, with Bank of America reporting a jump from 21% to 30% between April and June in investors indicating they have not invested in cryptocurrencies and have no plans to do so.

The bank notes that cryptocurrencies account for less than 1% of total household financial assets in the United States, implying that “relatively few people view crypto assets as reliable long-term investments,” according to a Bitcoin.com report.

On the other hand, the decline in the price of BTC has also forced a number of Bitcoin mining companies to sell most of their holdings. This action also contributed to the decline in the crypto market.