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Laxman Pai, Opalesque Asia:

Crypto holdings for most individuals are relatively small, but almost 15 percent of users have net transfers of over one month's worth of pay to crypto accounts, said a research.

U.S. households' involvement in crypto-assets (hereafter, crypto) rose sharply during the COVID-19 pandemic alongside a substantial increase in the overall personal savings rate. Five years ago, only a tiny fraction of individuals held crypto," said the new research from JPMorgan Chase.

"About 15 percent of crypto users have transferred on the net over one month's worth of take-home pay into crypto accounts, making them more vulnerable to the greater than 50 percent decline in crypto-asset prices observed since their peaks in late 2021," the report explained.

Most individuals who transferred money to crypto accounts did so when crypto-asset prices were significantly higher than recent levels, and those with lower incomes likely made purchases at elevated prices relative to higher earners, it added.

The report uses de-identified data covering a sample of nearly 5 million active checking account customers, over 600 thousand of which have conducted transfers to crypto accounts.

The adoption of crypto accounts (defined by the first observed crypto transaction) and the volume of transfers have come in concentrated episodes that coincide with sharp increases in the price of bitcoin.

The majority of new crypto users in our sample, from 2015 to 2022, m......................

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