Bitcoin Forum

They've been some kind of let's say an argument or two-sided opinions if it's okay for the bank of America to publish genuine cryptocurrency stats. A few hours ago, a tweet was made on this report about the decline of active cryptocurrency users in high numbers, ranging from 1 million to 500k. To me, this sounds like FUD news and in other people's opinion a true stat since it could be generated from exchanges. How possible could this be? Although we know, the cryptocurrency market is bearish now and people are withdrawing their funds as quickly as they could. But, not to such a number unless the LUNA deceased investors made up most of the stats. What do you think?

https://twitter.com/WatcherGuru/status/1544364935806844930

https://i.imgur.com/L7kMTYR.jpeg

Big if true. But also very natural. That'!s what happens during the bear markets. Bitcoin and other crypto tanks, people speak of crypto no more and when they least expect it, bitcoin makes a huge jump and everybody talks about it again. Happened many times before and it will happen again. This is the accumulation phase. Don't let it go to a waste.

I thought so, though human nature in the case of a friend when he got some issues they'll definitely back down or maybe stop visiting. In this case of bitcoin they'll wait to make profits real quick when the price is booming and people discuss how they made profits out of bitcoin. The stats is too big though, that means bitcoin is meant/ was created for only lesser, patient and strong hodlers or people to benefit or see huge profits.

Do they have an explanation of the statistical methodology they follow? It is difficult to track the number of active users so we can say the number of logins to a platform, tweets, shares but it is very difficult to determine the number of users in a decentralized network.

Luna Case will pay many novices to stay away for the time being.

There is not enough info for this stat. Is it referring to crypto users from the Bank of America customer base? - If yes, how is one active crypto user defined as?

It is normal the buying volume to be lower in bear markets. Didn't think it is quite so much (50%), but again I need more info of how this statistic has been created.

I don't think that those statistics are contributed by bitcoin users only. The end of last year was the memecoin hype and a few other moments that sparked newcomers, then left again as the hype had ended.
After all, it is currently a bearish phase that most bitcoin users choose to be passive (only holding).

That's how it works. New and more users come in the Euphoria phase, not Capitulation or accumulation.
Not even surprised I would say. And when Bank of America is giving you this data, that means the part of the world where there are the most crypto investors are no longer interested, you can think about the other regions.

I do think they do realize that feds just increased their interest rates which made most people quite reluctant to sell their coins and invest in the normal banking as well, therefore I do think that, it's completely okay since this number does not define the people who are doing p2p trading and holding as well, they would choose to keep their coins safe from the governmental eyes as well, other than that there are several Altcoins which are outperforming bitcoins this years so I do believe that people are definitely having a very different outlook regarding them and are willing to take a chance on them, that's just the market, you see where you wanna invest in.

It was expected. I mean look back then when BTC hit ATH and covid lockdown, it wasn't hard to get where most Americans would put their stimulus and relief money to stocks and cryptos. Since the BTC fall, most just gonna cash back to fiat from whatever is left and quit after all.

Without knowing the details of what they mark as a cryptocurrency user it's tough to be sure.
If they are using 'people that deposit or withdraw funds from known cryptocurrency exchanges' then as others have said above the 50% is not out of the realm of possibility.
On that same thought there are more and more places that you can get BTC / crypto from that may or may not show up depending on how they are doing it.
PayPal now has the ability to buy and withdraw BTC. Does that show up as crypto or just as regular PayPal
Transferring money to cashapp. I can use it to get lunch at a place that uses square / block as a processor or I can buy BTC

And so on. Without knowing how they came up with their number it's all a guess.

-Dave

Of course of course, if it's not positive and it's not about laser eyes, the price at 1 million soon it's FUD.

What do you expect with a declining price, with shitcoins getting trashed into oblivion, with the NFT madness dying down, with play-to-earn blockchain 'games" losing millions of players? The amount of money available in crypto has shrunk nearly 3 times, there is less money floating around, and there is less incentive to trade and invest.

Look at the number of blockchain transactions:
https://www.blockchain.com/charts/n-transactions

https://talkimg.com/images/2023/06/12/A8X48.png

Despite getting a next block confirmation with 2 satoshi per byte the number of actual transactions is way lower than two years ago, people are either hoarding or ditching usage altogether, and people holding coins in their cold wallets can't be called "active users".
It's pretty normal, it's a bearish trend and until the price goes up again you will not see an increase in active users, it simply doesn't work so.

Is it big though or have I missed the sarcasm implied here? Judging by your following sentence I'd assume so. Anyway, I'll chip in with its absolutely 100 percent expected, and by no means is unprecedented. This isn't really news per say, more confirmation of something that was already assumed.

Yeah, and we can't blame people to be holding or getting out. We're probably heading for a global recession that few have seen worse. Natural for people to ditch things that they aren't quite confident in or on the contrary hoard them, in hopes that'll put them in a better position years down the line when we're coping with the recession a little more.

If the decline is true, then I think it makes quite a bit of sense if you look at the bear market from the start that some of them are going to rest their money. Reports appear released, it does not mean that crypto users left the market without returning. We will see a mass arrival if the market approaches a bull run in the future. This sounds like the character of a long-term investor who doesn't want to be too ambitious in a deep bear market. It could be that they had taken their share when Bitcoin was under $20K at the time.

It would be too early to sell them now, the decision made them temporarily leave the market and look forward to ATH in sight.

50% is pretty big decline in my opinion but it's possible. People who jumped on crypto during the bull market where most likely on a loss right now and possibly jumped out on crypto. There are many who just take advantage of market by profiting then leaving crypto as soon as big downfall movement happened. I can expect that people will come again next bull run when everyone is talking about crypto. Everything now is down it's all time high including users.

I am not sure how trustworthy such data is because I don't know how they estimate these numbers, what counts as active usage to them, how much might not be accounted for. Also, even looking at the chart, it's clear that it went pretty low before but then jumped back up, so there's no reason to believe that won't happen again. Moreover, if it's about active usage, it might be that many people just tend to hodl their coins during bad times instead of trading them. It doesn't mean they don't care about the market or abandon it, they just don't sell at low price, which is wise.

It's unsurprising in a way, crypto has lost it's sparkle in the last few months and no longer looks like the rollercoaster that is climbing ever higher. People were drawn to it for such a long time because more money was piling in every day, but it was almost bound to reverse like any bubble in history. In the long run it will be better for Bitcoin if it returns to a much more realistic price, like it's at right now, and avoids the huge mass of speculators who were not properly interested in it's functionality. It has a great role for moving money around between countries, but for day to day transactions it is pretty inefficient when you compare it to existing payment networks.

Well, I can say that when BTC was at $50,000 I had a dozen friends ask me about buying in.  I pretty much told them all the same thing, "We're in the 9th inning of this bull run, if you buy in now and don't immediately take profits you'll probably lose money."  None of them listened and most of them decided to buy shitcoins instead of Bitcoin.  Some of them bought miners.  Now, all the miners are shut off and all the shitcoins have been sold except for the ones who refuse to take a loss.  I try to tell them that now is the time to be getting in for the next cycle, but they only want to chase get rich quick schemes, not invest.  I imagine that's pretty common with what is happening in the market right now.

So how do they come up with stats, though?

Are these figures from compliant exchanges, or just Bitcoin addresses created/transactions made?
Regardless, more people tend to get into crypto in bull runs due to FOMO and get out when there is a bear market, which is normal. So I don't know why this is making news.

im guessing its based on wire-transfers for BoA accounts to known exchange accounts

that said.
the number of wire transfers in jan 2020 was under 100k..
but their own numbers reveal that since then they average over 400k people have been depositing into exchanges a month every month. where sometimes double that people do at peak or for different reasons


never ever take an ATH number of any chart and deem it to be the "norm"
ATH(all time highs) are never the norm expectation..

the April 2021 was not the norm/expected, its just the temp high. so no one was making press releases in july 2021 when the hype settled down..

so dont take the Nov 2021 as a "norm" either. and again dont treat the april 22 as the bad press news sign of hate.. its just the calm after the tsunami

expect the waves in any chart.. just ride the waves and try to find where the real low tide lays to find the "norm" and then look at the chart from bottom up not top down..

if numbers never go below say 150,200 or 300 again. then thats the new norm.. the new low

The reason is very simple,it was due to the bear market.The market was fall down to the huge demands was immediately reduced.The market change was huge difference.After few weeks,the price of bitcoin was made the people to think of longer period.So it made the new people to make a involvement in the cryptocurrency for now.This will change when the price of the bitcoin back to the 40k market.

I definitely agree into this point or words!

People wont totally be talking when there's a bear market and when bull comes then this is the time where the change of waves and wind direction will happen and it would really be on trending once again but if it do

reaches out once again on having deep reds and having lots of fuds and negative sentiments then expect that no one would really be talking about it.Its normal that people would be pulling out their funds on the time
we are experiencing declines which isnt something surprising or shall we say its normal.If you've been here on this market for how many years then these circumstances wont really be giving you some shock.
Banksters and other institutional investors or known people would really usually made out some words something like this to create more FUD.We are already get used to it.

This is somehow unfortunate and I honestly think that this is indeed, due to FUD.

With the price of almost all cryptocurrencies crashing, most have decided to pull out their investments based on their contingency plan or their instincts. Though I believe that the price of BTC will recover at least by next year, it is still very unfortunate to see that most have decided to quit on investing cryptocurrencies. I guess, the crash really took a toll on their capital as most expected a "quick profit" in this platform.

Again, cryptocurrency investments are considered as high-risks and this bear market is a normal occurrence.

50% decline compared to the top of the bull cycle, but something like a 400% growth, compared to 2020. I'd say it's not bad, you can see that the trading volume is increasing in the long run. Maybe it's a bit sad that those users aren't making payments but just speculating, but speculation is also necessary, because higher trading volumes could reduce volatility.

I don't know how they came up with this figure but I think this is expected because crypto firms are falling one by one. A lot of users must have been exposed to crypto companies that have already bowed down to this bear market. As a result, they became inactive crypto users. But I don't give too much importance to this. This isn't about Bitcoin. As a matter of fact, this is even healthy to a certain extent. People are reminded that centralized and custodial crypto services are risky and that they should quit from it.

Thanks for sharing this.  Interesting information.  The problem I have with this right off the bat is I don’t see any links referencing where this twitter account actually got the statics.

I am not sure if this is FUD or not, but I would certainly not be surprised if this is somewhere near the actual numbers. I’m down markets people panic sell like crazy. It’s just sadly how it is.

I'm not blaming the investor for this, crypto is highly volatile than other investments I know and maybe this is their first crypto bear market. High risk High return is really happening on crypto space.

It's become a psychological effect, pure hype. When the market starts to drop, people start to see cryptocurrency is not useful anymore because they are just there for investment, they already think it is not profitable anymore because of the dumps.
It's just sad that those people are just here for the money or investment. They should first acknowledge how cryptocurrency works.

I think this is not fud but a reality. The interest is cryptocurrencies has declined a lot since the beginning of the bear market. The retailers are out of the market and we don't see much hype of crypto in social media. However, serious investors and whales are still there who are accumulating bitcoin. They number may be small in number, due to which this report says decline in 50% of active cryptocurrency users, however their investments are big.

Decreased activity does not necessarily mean people give up their cryptocurrency, this may be the result of Hold’s policy that many people follow in cases of decline, this is very normal in such bear markets, in addition, I can’t trust the banks statistics much because most people prefer privacy and anonymity When working in Crypto, therefore, it is very difficult to get accurate statistics. Statistics from large exchanges are more accurate in such cases.

Wouldn't be surprising as this would be one of the result of clout and profit chasing crypto if so as weak hand get shaken down and out.  And of course once things are 'rosey' again, you'll see the 100-150% increase in active users.

50% is only a small one because bear market only started recent months and people still keep up their hope. Some left already but many still stay and hope.

If you know Coinbase spent $600 million to build up their NFT marketplace and now it has 4 ETH in trading volume each day on average. It is a big issue for Coinbase in this bear market. Their budget for development goes to void.

https://nft.coinbase.com/
https://twitter.com/NFT__machine/status/1544662193903267840

Although it is bad in recent months, bear market is good for growth because price can not increase forever. In any market, corrections are the must. Bear market gives developer a less noisy working conditions and it is good for Bitcoin development too.

It's just the activity that is declining but once the market trend changes to bull, they'd deactivated and probably will soon be buying back the BTC and altcoins they once held. It's very natural to stop when the market is unpredictable. It's wise to just stop when you know you can't make money.

Did anyone expect that it would be less or more if we talk about the percentage of those who are currently not interested in anything related to cryptocurrencies? In general, we can conclude that the majority invests only when we are in a bull market because they are caught by FOMO - now there is no great possibility of short-term profit and there is an opportunity for the famous BOA to announce some negative news when it comes to crypto.

For those who are not familiar with the past of this bank, I'll just say that they used to close every account they suspected of having something to do with cryptocurrencies - I'm not sure if anything has changed in that regard, but it's strange to me that they even report about such things.

Yes, there were many new people who entered crypto when it was near its peak. The hype made these newbies investors make quick money and they invested in bitcoin blindly. These are the people who can handle this bear market or they do not have the capital to hold throughout this bear market. These were the weak hands who had no belief in the crypto future and it's good that money flows from the weak hands to the holders.

It is possible for some reason.

1.  Bear Market pushes people to hold.  Due to the uncertainty of the current market Bitcoin holders and traders may decide to hold passively and wait for the market to have a positive sentiment
2.  Due to the market decline, possible new investors are hesitant to jump into the crypto market.  And those who are shaken are already sold their holdings months ago thus they can't transact anymore.


I don't think Luna holders even make up 3% of crypto holders.  So Luna is out of the scenario. I am just thinking that many are holding cryptocurrency passively and new short-term investors are somehow hesitant due to the market condition.

We still have many weak hands in our community, we can't blame them they are after quick profit, and easily leave Crypto when it's dipping then come back when it's pumping because they don't want to be left behind or they are in FOMO, old investors already have experienced these hundreds of times before, but these newbies never learn the value of the word HODL and having strong hands.

.... Everything looks so bleak this time and there is so much uncertainty that no one feels like believing anything.
Inflation is a huge burden on the people now - they have trouble buying important stuff what to talk of crypto