CNBC recently conducted the All-America Economic Survey, which found that the views of the American people about cryptocurrencies have soured rather sharply after a series of crypto-related scandals, collapses, and bankruptcies.
As a matter of fact, many of them have now begun to favor regulation in the crypto market, considering the events that have taken place this year alone.
Back in March, there were 25% of people in America had a negative perspective about cryptocurrencies, but the results of the survey showed that the number has now climbed to 43%.
As for people who had a positive view of cryptocurrencies, it fell from 19% to just 8%, and those who had a neutral perspective fell by half from 31% to 18%.
This is a drastic decline for an investment that had been considered an asset class of its own and had been considered a competitor of gold.
In fact, it had a major coming-out party with numerous celebrity endorsements and Super-Bowl ads that put it on the global stage.
Many ordinary Americans had been drawn to the crypto industry because of its popularity and the survey showed that as compared to 16% in March, almost 24% of the public had traded, invested in, or used crypto in the past.
The survey was conducted between November 26th and November 30th and it involved a total of 800 Americans. There is also a margin of error in the survey of about 3.5%.
The results indicated that 42% of those who had invested in crypto now have a negative stance towards the asset and this was in accordance with 43% of the adults participating in the survey.
The primary difference is that 47% of those who had not invested in crypto are extremely negative, while 17% of those who had invested are also extremely negative.
To be able to recover its credibility could be a big challenge for crypto because its valuation and reputation are connected.
Experts said that the crypto market is 90% retail, which means the opinion of every investor makes a big difference.
For the last month, all anyone has been talking about is the collapse of FTX and this is enough to turn away new entrants into the crypto space.
Therefore, liquidity has declined in the crypto market and this has also reduced the willingness of people to invest in it.
Regardless of whether a survey respondent was a crypto investor or not, they were mostly in favor of regulating the market in the same way as bonds and stocks.
According to the results, 53% of the public believes that crypto needs to have greater oversight and regulation than stocks or bonds, or at least the same.
This includes 16% of crypto investors and 21% of all adults who want to see more regulation in the crypto market.
The negative stance on crypto comes at a time when the public is not positive about stocks either. Only 26% of the people said that it was a good time to invest in equities.
This was a reduction from the results of the survey in the last quarter and it is the most pessimistic it has been in the last 15 years.
51% of the people believe it is a bad time to invest in equities, which makes it the third-highest figure in the history of the survey.