The Silicon Valley Bank crisis appeared to rattle cryptocurrency investors more than non-investors. Immediately following reports of the bank’s collapse, CivicScience data showed that crypto investors reported less confidence in the security and health of their personal bank than non-investors. 

However, cryptocurrency investors historically exhibit lower levels of trust in banks than the general population. Prior to the SVB crisis in February, 61% of people with cryptocurrency investment experience said that they trusted banks at least ‘somewhat,’ compared to 64% of the general population (monthly averages).

Lower confidence and trust among crypto investors isn’t surprising, given that a certain percentage of crypto investors have likely invested in cryptocurrency as a hedge against traditional financial institutions, as suggested in previous studies. Following declining interest in new crypto investment coinciding with the FTC-led crisis, are more people now looking favorably on crypto and other fintech solutions, such as NFTs, to counter the recent banking crisis?

All signs point toward “no.” 

First, tracking cryptocurrency experience shows that investments and intent to invest are trending downward among poll respondents. Just 8% say they plan to invest, one of the lowest points seen on the adoption tracker. This is expected, given reports that cryptocurrency values took a hit alongside the bank collapses.

In fact, the latest polling data reveal that today, fewer U.S. adults say they invest or would invest in crypto as a hedge against ‘adverse economic conditions.’ This has declined three points from March 2022 to just 8%. Moreover, views on cryptocurrency appear to have shifted significantly as of this year. Consumers are also less likely to invest in crypto as a long-term growth investment (27%), while they are much less likely to see it as a functional form of currency (falling 7 points to just 11% from this time last year). Rather, they are more likely to view crypto’s value as a short-term investment (25%), a vehicle of ‘independence from government involvement’ (13%), or for ‘other’ reasons (15%).

Despite the banking crisis, traditional stocks are viewed more favorably today. Americans say they are far more likely to invest in traditional stocks today versus cryptocurrency. Crypto in this context fell by more than half from November 2021.

Interest in investing in general ‘tech alternatives to financial assets’ outside of traditional banking, including cryptocurrency and NFTs, has also dwindled, falling from 20% in April 2021 to 17% today.

In short, the banking crisis has not boosted the appeal of cryptocurrency. Rather, all signs point toward general decreasing interest and flailing confidence in crypto alongside continued decreasing trust in banks. Ultimately, the data suggest that the banking crisis – which involved crypto-friendly banks (Signature and Slivergate) – may have further damaged crypto’s outlook.

CivicScience can help you stay on top of how consumers are responding to developments in the fintech industry. Get in touch.