Despite the bear market sentiment, most crypto holders have plans to purchase “some amount of crypto” before the end of the year.
A new survey by the Bank of America shows interest in cryptocurrencies remains high among Americans, with over 90% of respondents saying they planned to buy crypto over the next six months.
According to Jason Kupferberg, an analyst at Bank of America, the survey was conducted on 1 June, coming in the aftermath of the Terra Luna collapse. 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 crypto was similar to the number that said they bought during the first six months of 2022.
Bitcoin adoption and payments
On the use of Bitcoin and other cryptocurrencies, the bank says adoption is not very much pronounced.
However, with increased movement towards crypto-linked payment like Coinbase’ Visa card, the connection to merchants and users is much seamless and helpful towards new momentum in the sector.
Bank of America also says the crypto market is likely not seeing a major shift in global adoption to too many cryptocurrencies and crypto exchanges. Likening it to the dotcom era, Kupferberg says some of the projects are most likely going to fade away, before those that survive see greater adoption.
BTC and stocks price correlation
The BofA analyst also noted that Bitcoin continues to correlate highly with stocks, especially high growth tech stocks. This lockstep trading has a BTC price tank alongside downturns in the market, trending in a bear market as major stocks sold-off.
On Monday, Bitcoin price fell nearly 18% as negative headlines around Celsius Network compounded the downside pressure. BTC/USD fell to a 24-hour low of $22,725.