Crypto Losing Steam Among US Investors: What FINRA’s 2025 Study Reveals About the Market Shift

• How Has Crypto Investment Changed Since 2021?
• Why Are Younger Investors Pulling Back?
• What Does This Mean for Crypto's Future?
• How Are Social Media Influencers Changing the Game?
• What Protection Do Investors Need?
• Is This Just a Crypto Problem?
• Will the Crypto Winter Thaw?
• Your Crypto Questions Answered

American investors' love affair with cryptocurrency appears to be cooling, according to fresh data from FINRA's Investor Education Foundation. While over a quarter still hold digital assets, enthusiasm for new purchases has noticeably waned since the 2021 crypto boom. This comprehensive analysis dives into the changing behaviors, risk perceptions, and surprising contradictions in today's investment landscape.

How Has Crypto Investment Changed Since 2021?

The numbers tell a sobering story: Only 26% of US investors currently plan to buy cryptocurrencies, down significantly from 33% in 2021's frenzy. Yet paradoxically, ownership rates remain steady at 27%. "It's not a mass exodus, but rather a cooling of enthusiasm," notes a BTCC market analyst. "People aren't rushing to sell, but they're certainly not rushing to buy more either." Data from CoinMarketCap shows trading volumes have mirrored this trend, stabilizing after 2021's volatility.

Why Are Younger Investors Pulling Back?

The most dramatic shift appears among investors under 35, traditionally crypto's biggest champions. Their participation rate dropped from 32% to 26%, with risk tolerance plummeting from 24% to just 15%. "After riding crypto's rollercoaster, many young investors got motion sickness," quips financial educator Mark Tannenbaum. Yet contradictions abound - while claiming to be more cautious, 43% still trade options and 22% use margin accounts. TradingView charts reveal these investors continue pursuing aggressive strategies, just with different assets.

What Does This Mean for Crypto's Future?

Despite the pullback, crypto's foothold remains strong with over 50 million American adults holding digital assets. The FINRA study suggests cryptocurrencies aren't disappearing from portfolios, but settling into their role as one speculative option among many. "It's the normalization of crypto, not its demise," observes SEC Commissioner Hester Pierce. Interestingly, 62% of young investors still believe risk-taking is necessary for financial success - they're just being choosier about where to take those risks.

How Are Social Media Influencers Changing the Game?

A startling 61% of under-35 investors now rely on social media influencers rather than financial professionals for guidance. YouTube dominates, but TikTok's influence is growing rapidly. "This creates a dangerous mix of financial advice and entertainment," warns FINRA's report. Nearly half of investors WOULD believe promises of 25% guaranteed returns - classic scam territory - yet 89% think they've never encountered fraud. "The confidence gap here is terrifying," adds Pierce.

What Protection Do Investors Need?

FINRA emphasizes urgent need for better financial education, particularly around digital assets. With social media accelerating both information and misinformation, regulators worry about protecting inexperienced investors. "We're seeing the aftermath of the 'get rich quick' crypto culture," says Tannenbaum. "Now we need to build sustainable 'stay rich wisely' practices." The report highlights several red flags investors should watch for, including guaranteed returns and influencer pressure tactics.

Is This Just a Crypto Problem?

Not at all. The risk aversion extends across all speculative investments. Only 8% of investors overall are willing to take substantial risks today, down from 12%. Even traditional "risky" plays like penny stocks and forex trading have seen participation drops. "It's a post-boom hangover affecting the entire market," explains the BTCC analyst. Historical data from TradingView shows similar patterns followed previous financial bubbles, suggesting this may be a natural market correction.

Will the Crypto Winter Thaw?

Market cycles suggest enthusiasm will eventually return, but likely in different form. "The next wave won't be driven by memecoins and moon shots," predicts Pierce. "Institutional products like ETFs and regulated platforms will lead." Indeed, while retail interest cools, institutional crypto investments continue growing steadily according to CoinMarketCap data. This transition could ultimately bring more stability to the volatile crypto markets.

This article does not constitute investment advice.

Your Crypto Questions Answered

What percentage of Americans own cryptocurrency in 2025?

According to FINRA's study, 27% of US investors currently hold cryptocurrency, representing over 50 million American adults.

How has crypto investment changed since 2021?

Interest in buying crypto dropped from 33% in 2021 to 26% in 2025, while ownership rates remained stable at 27%.

Are young investors still interested in crypto?

Participation among under-35 investors declined from 32% to 26%, showing cooling but not disappearing interest.

How are social media influencers affecting crypto investment?

61% of young investors now rely on influencers rather than professionals for financial guidance, increasing exposure to potential scams.

Is crypto the only investment losing popularity?

No, all high-risk investments are seeing reduced interest, with only 8% of investors willing to take substantial risks compared to 12% previously.