New research from JPMorgan Chase reveals that about 13% of the American population — or 43 million people — have owned cryptocurrency at some point in their lives.

According to a December 13 report titled “Dynamics and Demographics of Household Crypto-Asset Use in the United States,” this number has increased significantly since before 2020, when the figure was only around 3%.

The latest data from JPMorgan comes from an analysis of current account transfers from a sample of more than 5 million customers. It found that 600,000 customers in this sample set transferred money to crypto accounts sometime during the period from 2020 to 2022.

The study also noted that cryptocurrency holders usually made their first cryptocurrency purchases during a rally in cryptocurrency prices. During this time, the amount of cash sent to cryptocurrency exchange accounts usually exceeds the money removed. In other words, most people were holding their cryptocurrency during this time period.

This changed in early 2022 as cryptocurrency prices plummeted, according to JPMorgan. In recent months, cash transfers to cryptocurrency exchanges have slightly exceeded cash transfers from them.

JPMorgan says this is a result of lower cryptocurrency prices and a broader trend of the US savings rate declining since the pandemic:

“We view the ups and downs of cryptocurrency use since the onset of COVID as consistent with the interrelationship between retail flows and market prices seen in previous research. In addition, the trend in cryptocurrency flows also tracks the dynamics of household savings, which have risen to historic levels. early in the epidemic but it is starting to reverse.”

Who is buying?
The report also focused on whether certain demographic groups are more likely to buy cryptocurrencies. It found that men of all ages are buying cryptocurrencies much more than women, and younger people are buying much more than the elderly. For example, the report found that more than 25% of millennial men have purchased cryptocurrency, while only about 12% of millennial women and 5% of males have purchased cryptocurrency.

Breakdown of crypto ownership by demographic. Source: JPMorgan Chase
The research also found that cryptocurrency holdings were relatively minor for most individuals, with average inflows equaling less than one week’s worth of home pay.

On the other hand, about 15% of cryptocurrency owners had invested more than a month’s wages in cryptocurrencies.

Related: Arthur Hayes Says Bitcoin Has Hit a Bottom as ‘Everyone Who Might Go Bankrupt’

The cryptocurrency market experienced a sharp decline in 2022. Bitcoin
BTC

pointers down
$16,699

It fell from a 2022 high of $47,459 in March to $17,208 at the time of writing, while Ether
ETH

pointers down
$1,177

It fell from $3,521 in April to $1,273 at the time of writing.

This decline in the cryptocurrency market was a result of market shocks such as the loss of the TerraUSD (UST) stablecoin peg in May and the bankruptcy of cryptocurrency exchange FTX in November.

Trading fees have dropped on many cryptocurrency exchanges, with Coinbase even reporting that their revenue has fallen by nearly 50%.

But despite this decline in cryptocurrency prices and trading activity, this new report indicates that cryptocurrency ownership has been increasing over the past few years.

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