Fed study finds Bitcoin returns can spur crypto buying

A Federal Reserve Bank of Cleveland working paper published on July 14, 2026, found that information about Bitcoin’s previous gains can impact the desired cryptocurrency allocations and purchases of U.S. households. Expected returns and perceived risks were more influential in ownership differences than personal characteristics. Crypto owners expected 22% annual returns, while nonowners expected 7%. The study showed that information about Bitcoin’s performance increased desired crypto allocations and actual purchases among households. The research suggests that rising prices attract new market participants, potentially creating a feedback loop. The findings do not establish official Federal Reserve policy.