A Federal Reserve Bank of Cleveland study found that crypto ownership is driven more by investors’ expectations about future returns and risk than by traditional factors such as age, income or gender.
Crypto owners surveyed expected an average 22% return over the following year, compared with just 7% among non-owners, while also viewing digital assets as less risky.
In a 2025 experiment, households shown Bitcoin’s previous 12-month performance increased their desired crypto allocation by about 2 percentage points — roughly 47% above the control group — while subsequent crypto purchases rose about 2.5 percentage points.
Researchers said the results suggest a potential feedback loop: Bitcoin gains attract new investors, their buying pushes prices higher, and those higher prices can attract even more participants.
The study concluded that wide disagreement and limited knowledge about crypto could keep volatility elevated, with past price performance itself playing an important role in shaping future retail demand. $BTC
Crypto owners surveyed expected an average 22% return over the following year, compared with just 7% among non-owners, while also viewing digital assets as less risky.
In a 2025 experiment, households shown Bitcoin’s previous 12-month performance increased their desired crypto allocation by about 2 percentage points — roughly 47% above the control group — while subsequent crypto purchases rose about 2.5 percentage points.
Researchers said the results suggest a potential feedback loop: Bitcoin gains attract new investors, their buying pushes prices higher, and those higher prices can attract even more participants.
The study concluded that wide disagreement and limited knowledge about crypto could keep volatility elevated, with past price performance itself playing an important role in shaping future retail demand. $BTC