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As per the latest study, only 8% of Americans now have a favorable opinion of cryptocurrency

According to a recent CNBC study, only 8% of Americans had a positive opinion of cryptocurrencies as of November, a dramatic decline from the 19% noted in March.

Photo by Christian Lue / Unsplash

The end of November saw the release of CNBC's All-America Economic Survey, a few weeks after the demise of the cryptocurrency exchange FTX.

The Study

According to a recent CNBC study (1), only 8% of Americans had a positive opinion of cryptocurrencies as of November, a dramatic decline from the 19% noted in March. The All-America Economic Survey by CNBC was performed from November 26 to November 30. It should, however, be viewed with caution because, despite its name, it only included 800 respondents from all across the United States, with a margin of error of +/- 3.5%.

The report was released on December 7 and coincided with a decline in the number of cryptocurrencies. The percentage of haters (those with unfavorable opinions about cryptocurrencies) has climbed quickly, from 25% in March to 43% by November, according to friendly respondents, CNBC noted. The results show a "dramatic decline for an investment billed as its asset class and had a lauded coming-out party on the world stage with several Super Bowl advertisements and celebrity endorsements."

What the results indicate

According to the study, 24% of the general population had invested in, traded, or utilized cryptocurrencies in the past, up from 16% in March. This popularity has drawn many everyday Americans to cryptocurrencies. The study also revealed that a significant portion of cryptocurrency investors are becoming pessimistic about the asset class, with 42% of these respondents indicating they had a "somewhat or very unfavorable opinion." viewpoint" on crypto.

The study found that 42% of cryptocurrency investors now have a slightly or very unfavorable opinion of the asset, which is in line with the 43% result for all adult survey participants. The primary distinction is that, in contrast to 47% of non-crypto investors, 17% of cryptocurrency investors are "extremely negative," according to CNBC. The study did not speculate what led to the negative opinion between March and November, although recent developments in cryptocurrency are probably to blame.

The U.S. dollar-pegged stablecoin Terra USD (UST), which was Do Kwon's creation, crumbled in May, wiping approximately $44 billion from the market. Celsius filed for bankruptcy in July along with a few other cryptocurrency lenders, seizing a sizable portion of client cash. The biggest shock occurred in November. With FTX, the third-largest cryptocurrency exchange by trading volumes, declaring bankruptcy on November 11, billions were again erased from the market, and customer assets were locked up.

How do investors view these results?

This week, Brian Brook, the CEO of the cryptocurrency exchange Bitfury (2), stressed at the CNBC Financial Advisor Summit that the opinion of small-time investors is "truly important" because the cryptocurrency industry is "90% retail." Therefore, when you see FTX news on the Wall Street Journal's main page essentially every day for the past 30 days, what it does is make relative newcomers afraid. Because of this, he continued, "liquidity is thinner than it would have been, and people are less eager to invest."

However, not all is gloom and doom, at least when it comes to institutional investors, doom and gloom. A poll sponsored by Coinbase (3) performed between September 21 and October 27 and released on November 22 revealed that 62% of institutional investors who had previously invested in cryptocurrencies had raised their holdings. Despite FTX hogging the headlines the whole month, cryptocurrency exchange Bitstamp reported that institutional registrations on its digital asset trading platform were up 57% in November.