LIVE MARKETS-Crypto adoption shows signs of recovery

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CRYPTO ADOPTION SHOWS SIGNS OF RECOVERY

U.S. crypto adoption in March showed some recovery, rebounding to July 2025 levels after months of decline, as the asset class struggles to find its footing amid geopolitical uncertainty, according to Deutsche Bank.

Bitcoin BTC= has fallen more than 14.3% so far this year as investors have retreated from risk assets amid heightened global market volatility driven by the Middle East conflict.

Deutsche Bank's latest crypto survey - which included 3,400 consumers across the U.S., UK, and EU - showed U.S. adoption rates recovered to 12% in March, up from a trough of 7% in February, in line with bitcoin's price rebound and strong U.S. ETF inflows.

The report highlights that institutional bitcoin ETFs saw approximately $1.3 billion in inflows in March, while retail engagement remained limited but showed signs of recovery.

In the UK, crypto adoption fell slightly to 9% in March, but remains higher over the long term, suggesting sustained consumer interest. Europe's rates remained steady at 7%.

The survey also found that younger consumers in the UK drove the biggest rise in adoption, with 85% of crypto investors aged 18-34 in March, up from 55% a year earlier.

Despite the recovery, most consumers expect bitcoin's price to be lower by the end of 2026, with very few anticipating a return to the $120,000 levels.

Broadly across the three regions, consumers continue to favour the S&P 500 and gold over bitcoin, although the gap is narrower in the U.S.

(Akriti Shah)

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