Fed Survey Exposes The Problem Behind Crypto’s Growth

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Ten percent of Americans used cryptocurrency in 2025, according to a new Federal Reserve survey, marking the highest level since the 2022 bear market. But nearly all of that growth came from investing and trading activity rather than payments or day-to-day usage, even as the broader crypto market closed the year lower. At the same time, U.S. Treasury yields pushed above 5%, creating a macro backdrop that looks increasingly hostile for speculative assets.

Americans Returned To Crypto, But Utility Still Looks Weak

At first glance, the numbers in the “Economic Well-Being of U.S. Households in 2025” report look bullish. Crypto participation recovered from 7% in 2023 to 10% in 2025, despite a difficult market environment and rising economic concerns across the United States.

However, the issue is where the demand came from. The Federal Reserve’s data shows 9% of Americans bought or held cryptocurrency as an investment, whereas only 2% used crypto to purchase something or make a payment. Sending money to family or friends through crypto remained stuck at just 1%.

That undercuts one of the crypto market’s biggest narratives over the last two years. Stablecoins, decentralized finance (DeFi) infrastructure, and blockchain payment rails have dominated industry conversations, yet the Fed’s own survey suggests mainstream consumers still mostly see crypto as a speculative asset.

The report also found that crypto transaction usage was more common among unbanked Americans, where access to traditional financial services remains limited. In areas where banking infrastructure already exists, payment adoption barely moved.

Rising Treasury Yields Are Making the Macro Picture Worse

At the same time, the wider economic backdrop is becoming more difficult for risk assets. 

The U.S. 30-year Treasury yield recently climbed above 5%, reaching levels not seen consistently since the years surrounding the 2008 financial crisis. Higher bond yields increase competition for speculative assets because investors can suddenly earn meaningful returns from traditional fixed-income markets without taking crypto-level volatility.

Meanwhile, the Fed’s report showed economic anxiety continuing to build across households. Forty-two percent of Americans said finding or keeping a job had become a financial concern, up from 37% the previous year.

This combination creates a very different setup from the liquidity-heavy crypto boom of 2021.

Back then, near-zero interest rates and stimulus pushed investors toward high-risk assets. Today, bond yields remain elevated, inflation concerns still dominate household sentiment, and the Federal Reserve’s own survey shows Americans remain worried about affordability and financial pressure.

So despite crypto ownership climbing again, the foundation underneath this growth still looks heavily investment-driven as opposed to utility-driven.