Seven Million Britons Now Hold Crypto Assets Amid Bitcoin Rise to $95,000

As of August, seven million adults in the UK possess crypto assets, representing a significant increase from five million in 2022. Many of these individuals mistakenly believe they would receive compensation if issues arise with their investments.

The Financial Conduct Authority’s latest data indicates a notable uptick in digital asset ownership, which includes popular cryptocurrencies like bitcoin and ethereum. It also reveals an increase in individuals borrowing funds to finance their crypto purchases.

The rise in crypto ownership has reached approximately 12% of UK adults, climbing from 10% in June 2022. This is coupled with a growing number of individuals holding substantial investments.

Specifically, the proportion of respondents owning between £1,000 and £10,000 has expanded from 20% to 36%. The average value of holdings now stands at £1,842, compared to £1,595 last year.

Conducted in August, the recent survey captured data while bitcoin was valued around $60,000, prior to the wave of enthusiasm following Donald Trump’s election as president, which has since driven prices up to approximately $95,000.

The FCA analysis suggests that cryptocurrency ownership skews towards younger individuals, predominantly male, those with higher socioeconomic status, and higher income levels.

Concerns about the understanding of investor protection among crypto owners have increased, with 20% now believing they have a form of compensation should issues arise, a rise from just 10% in 2022.

Given that cryptocurrency operates in a largely unregulated environment, the FCA has consistently cautioned that investors should prepare for the possibility of losing their entire investment. This increase in ownership occurs even after the collapse of the FTX platform in late 2022, which was embroiled in fraud.

The FCA’s findings highlight that individuals aged 18 to 34, women, and those with more than £1,000 in crypto holdings are statistically more likely to think they have some level of protection against financial loss.

The analysis also noted that while most crypto purchases are made with available cash, the percentage of individuals using credit cards or other borrowing methods has increased from 6% to 14% since 2022.

Furthermore, there is a rise in crypto enthusiasts engaging in “staking,” where they temporarily allocate their tokens to the blockchain in exchange for rewards.

Supporters of cryptocurrency believe that certain digital currencies could integrate into the mainstream financial landscape, while critics argue that they are often associated with illegal transactions and speculative bubbles.

Trump’s intentions to position the U.S. as “the crypto capital of the planet” have raised hopes for a more accommodating regulatory framework.

Currently, the number of individuals in the UK owning cryptocurrencies stands at seven million, in comparison to an estimated 11.3 million who own shares directly, according to the FCA’s Financial Lives Study from 2022.

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