Cryptocurrencies have been in a slump in 2022, falling into a
bear market
that deepened on Monday with a fresh rout that slashed the total market capitalization of the space to under $1 trillion for the first time since early 2021 — but even that may not be enough to deter some buyers, according to a survey conducted by Bank of America.
The survey, which was conducted at the beginning of June, covered 1,000 current and potential users of crypto and crypto exchanges in the US and showed that 91% of respondents said they would be buying crypto in the next six months.
That percentage is the same as those who said they had bought in the previous six months. Most of the respondents were short-term investors, with 77% stating that they have held crypto for less than a year.
"Using it as a payment method is interesting for sure, and we think what that's highlighting is the increased use of what we call crypto-to-fiat type products," Bank of America analyst Jason Kupferberg told CNBC Monday.
Additionally, 30% of respondents said they do not plan to sell any of their cryptocurrency in the next six months, per the report.
Bank of America analysts also noted that 39% of respondents use crypto as an online payment method, and 34% use it for in-person payments.
Meanwhile, the crypto market is now worth less than $1 trillion for the first time in 16 months as bitcoin, ether, and other tokens sell off. Major cryptos have largely tracked stocks this year, which have fallen thanks to rate-hike worries.
Kupferberg compared the crypto landscape to the internet stocks of the early 2000s, when many companies sprouted up but only a few became long-term successes.
"The reality is that there are too many crypto exchanges, there are too many cryptocurrencies and tokens," Kupferberg said. "There's going to need to be some sort of consolidation."
Bitcoin has lost roughly 65% of its value since it hit is all-time high above $69,000 in November.