A new CNBC poll suggests that only 8% of Americans had a favorable view of cryptocurrencies at the end of November, down significantly from the 19% registered in March
CNBC’s All-America Economic Survey was conducted between November 26 and 30. However, it should be taken with a grain of salt as, despite its name, it had a relatively small sample size of 800 respondents. throughout the US in total, with a margin of error of +/- 3.5%.
The survey was released on Dec. 7, and along with the declining number of cryptocurrency-friendly respondents, CNBC noted that the number of “haters” (those with negative views on cryptocurrencies) has grown rapidly, from 25% in March to 43% in November.
CNBC suggested that the results indicate a “dramatic drop for an investment that was touted as its own asset class and had a celebrated coming-out party on the global stage.” with multiple Super Bowl ads and celebrity endorsements.”
“That popularity has drawn many ordinary Americans to cryptocurrency and the survey shows that 24% of the public have invested, traded or used cryptocurrency in the past, up from 16% in March.”
The survey also indicated that a fair number of crypto investors are turning sour towards the asset class as well.; 42% of those surveyed indicated having a “somewhat or very negative opinion” of cryptocurrencies.
“According to the survey, 42% of crypto investors now have a somewhat or very negative view of the asset, in line with the 43% result for all adults in the survey. The main difference: 17% of crypto investors are ‘very negative’, compared to 47% of non-crypto investors,” notes CNBC.
Although the survey does not posit what caused the negative sentiment between March and November, recent events in the cryptocurrency sector likely played a role.
In May, Do Kwon’s brainchild, the U.S. dollar-indexed stablecoin Terra USD (UST), imploded, removing USD 44 billion from the market. In July, cryptocurrency lender Celsius – among many others – went bankrupt. and blocked an inordinate amount of client funds.
The biggest shock this year came in November, when FTX, the third-largest cryptocurrency exchange by trading volume, filed for bankruptcy, removing billions from the market again and blocking client funds.
Speaking at the CNBC Financial Advisors Summit this week, Brian Brook, CEO of cryptocurrency exchange Bitfury, noted that cryptocurrency is “90% a retail market, which means individual investor sentiment really matters.”
“And so, when you read FTX stories on the front page of the Wall Street Journal, literally every day for the last 30 days… what it does is scare the relatively new entrants.”
“And as a result, liquidity is less than it could have been and people’s willingness to invest is less,” he added.
Having said that, It’s not all doom and gloom, at least when it comes to institutional investors.
According to a Coinbase-sponsored survey published on Nov. 22 and conducted between Sept. 21 and Oct. 27, 62% of institutional investors investing in cryptocurrency have increased their allocations in the last 12 months.
This week, the crypto exchange Bitstamp also claimed that institutional registrations on its digital asset trading platform had risen 57% in November, despite FTX dominating headlines throughout the month.
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