Trump’s Bitcoin push faces investor skepticism as cryptocurrency ownership declines and Bitcoin price plummets
Even after U.S. President Donald Trump’s strong support and looser cryptocurrency rules, many Americans are still not investing in Bitcoin and other cryptocurrencies, according to an agency. New report from the Urban Institute. The report found that only 17% of U.S. adults have ever owned cryptocurrencies, and only 9% currently own cryptocurrencies, meaning that nearly half of those who once invested in cryptocurrencies have left the market.
The Urban Institute’s findings are based on a January survey of more than 3,000 adults, making it one of the latest studies on cryptocurrency ownership in the United States. The report comes as it has become easier for ordinary people to buy cryptocurrencies such as Bitcoin through investment products such as exchange-traded funds (ETFs).
Trump’s Bitcoin push
President Donald Trump has openly promoted cryptocurrencies and pledged to make the United States the “crypto capital of the earth.” According to USA Today, Trump’s support helped push Bitcoin prices to record highs in 2025, but the price increase did not lead to a significant increase in new investors. Since reaching these highs, Bitcoin has lost approximately half of its value, making many investors wary of entering the market.
Alex Carchidi, a contributing cryptocurrency analyst at The Motley Fool, said: “There is no big wave of new cryptocurrency investors.” He added, “In fact, since the market crashed in October, many professional cryptocurrency investors … have left the market or hibernated in some way,” USA Today noted.
Why investors are staying away
Another major study Fed It also shows that cryptocurrencies still account for only a small portion of U.S. investment. The latest report released by the Federal Reserve in May found that 10% of U.S. adults will use cryptocurrencies by 2025. According to the Federal Reserve, cryptocurrency use may reach its peak in 2021, when 12% of Americans buy, sell, hold or use cryptocurrencies. By comparison, approximately 62% of Americans own stocks, indicating that traditional investing is still much more common than cryptocurrency investing.
Experts say cryptocurrencies are still viewed as a specialized type of investment rather than an investment suitable for everyone. “People still view it as a more specialized asset class,” said Amy Arnott, portfolio strategist at Morningstar. She added, “I think the volatility and these big cyclical declines may still be keeping people away.”
Before 2024, people who wanted to buy digital currencies would typically have to use specialized cryptocurrency exchanges, making investing more difficult for beginners. According to USA Today, this situation changed in January 2024, when U.S. federal regulators approved a spot Bitcoin ETF, allowing investors to purchase Bitcoin through regular stock market accounts.
Encryption rules change
In 2025, President Trump signed an executive order supporting federal regulation of digital currencies and proposing the establishment of a national cryptocurrency reserve. Trump continues to support cryptocurrencies, and his family businesses have profited from the industry. According to the New York Times, Trump’s family companies earned approximately $1.4 billion from crypto-related projects in 2025.
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Earlier this year, Trump’s Labor Department proposed a rule that would make it easier for cryptocurrencies and other alternative investments to be included in retirement plans. Many experts oppose adding cryptocurrencies to retirement accounts because they believe it is too risky and difficult for many people to understand.
“If you understand how cryptocurrencies work, it’s OK,” Luisa Godinez-Puig, a senior fellow at the Urban Institute, said, according to USA Today. “But for a lot of people, cryptocurrencies are a little mysterious. There’s a certain learning curve.” The value of Bitcoin has fallen sharply from about $125,000 in October 2025 to about $65,000 in late July 2026.
Experts say the sharp drop in Bitcoin prices could be one of the main reasons why many investors are leaving Bitcoin cryptocurrency market. “By definition, that means people are selling,” said Caleb Silver, editor-in-chief of Investopedia. He added, “It could mean that people who were trying to buy it have decided not to own it anymore because they’ve seen the price plummet.” Of those who still own cryptocurrencies, 45% said they bought cryptocurrencies to diversify their investments.
Another 37% said they invested because they were interested in new technologies. The survey shows that about 27% of people believe that digital currencies are the future. About 8% of Americans say they once owned cryptocurrency but no longer do. Former cryptocurrency investors were more likely to say they invested primarily to make money rather than because they believed in the technology.
Bitcoin price plummets
Many former investors said they stopped investing because of losses. “Over the past 15 years, many investors have purchased cryptocurrencies simply to chase prices,” Silver said, according to Investopedia.
The survey also found that most current cryptocurrency investors have held digital currencies for many years. Their investments are typically smaller, with about two-fifths owning assets worth less than $250 cryptocurrency. The study found that the majority of cryptocurrency investors are men and that Asian Americans are more likely to own cryptocurrencies than other racial groups. The report also found that cryptocurrency investors are generally younger than the general population. The Urban Institute recommends that banks, cryptocurrency exchanges and other providers should clearly explain the risks of investing in cryptocurrencies.
Some investment experts also question whether cryptocurrencies are a good way to diversify an investment portfolio because Bitcoin typically falls when the stock market declines, reducing its value as a safe investment. “It’s nearly impossible to determine its underlying value,” Morningstar’s Arnott wrote in a 2025 article. She added, “For these reasons, a portfolio weight of 5% or less seems prudent, and many investors may want to skip cryptocurrencies entirely.”
Overall, the report suggests that Trump’s efforts to make cryptocurrencies more popular increased attention to Bitcoin, but they did not convince most Americans to invest, primarily because of price volatility, uncertainty and the risk of losing money.
