Investing.com – JPMorgan Bank (NYSE:) has concluded that the U.S. cryptocurrency market exhibits characteristics of “herd behavior” after many investors bought the top.
The bank has studied the dynamics and demographics of U.S. household cryptocurrency usage and finds that cryptocurrency transfers have been largely synchronized around large price increases, noting: “A wide range of households Americans moved money into crypto accounts when those assets were trading near their highest levels.”
“The majority of US households were likely facing large percentage losses to prevailing cryptocurrency prices at the end of 2022.”
The bank looked at a sample of nearly 5 million active customers and finds that the COVID-19 pandemic was the main factor pushing nearly 15% of US households into the cryptocurrency market.
The institution also reveals that men participate more broadly and deeply in the cryptocurrency market, as do Asians and young people with higher incomes. However, the cryptocurrency holdings of most individuals are relatively small.