An experiment conducted by the Federal Reserve Bank of Cleveland found that Bitcoin gains increase investor optimism and strengthen the likelihood of cryptocurrency ownership. Participants informed of Bitcoin’s 14.3% return over 12 months were 2.41 to 2.48 percentage points more likely to report owning cryptocurrency in a later survey, representing an approximately 23% increase from the initial 11% ownership rate. The effect was strongest among people with limited crypto knowledge, suggesting rallies attract undecided investors more than those with firmly held views. The study also found that a hypothetical household holding its entire financial portfolio in crypto would be 1.4 percentage points more likely to purchase a durable good if Bitcoin’s price doubled.
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