UK Crypto Holders Are Dwindling In Numbers, Report Shows

UK crypto ownership fell to 8% this year, as FCA data shows fewer holders but higher average balances and new rules ahead.

UK crypto ownership has recorded its first year on year decline since 2021. New data from the Financial Conduct Authority now shows fewer adults now hold digital assets. 

This comes after a year of heavy price swings, liquidations and changing user behavior. Even new all time highs in Bitcoin prices earlier in the year failed to keep retail interest strong.

UK Crypto Ownership Drops After Years of Growth

UK crypto ownership fell to about 8% this year. This is notable because that figure stood at 12% in 2024. FCA research based on YouGov data confirms the decline and shows that toughly 7 million adults held crypto last year. 

That share now sits lower despite strong public awareness.

The FCA report shows that awareness levels remain steady at 91% as many adults still understand crypto basics but fewer choose to hold assets right now. 

Thus, the pullback shows market fatigue rather than a loss of interest.

Bitcoin surged to $126,251 in early October and prices later fell hard. Retail activity also slowed as losses mounted and forced liquidations wiped out billions. Because of this, many smaller investors stepped away.

Despite this setback, ownership levels still remain above earlier years. The UK saw only 4.4% ownership in 2021, and growth from that low remains intact, even after this decline.

Larger Balances Replace Small Holdings

The structure of UK crypto ownership has also changed. FCA data shows that fewer people now hold very small balances and the share of users with under £100 keeps shrinking.

Despite this, more holders now report larger positions. About 21% hold between £1,001 and £5,000 and that figure rose four percentage points this year. Another 11% hold between £5,001 and £10,000, and this trend indicates conviction among remaining users. 

The main takeaway is that casual ownership has faded and long-term holders now dominate the market.

Risk Appetite Remains High Among Users

In all, crypto holders show a higher tolerance for risk than the general public. About 63% accept higher risk for higher returns while only 24% of non holders share that view.

Despite this appetite, behaviour looks more cautious than before. Use of credit to buy crypto fell to 9% and that figure reached 14% last year.

Most users who relied on credit said they would have bought similar amounts anyway which means that credit access did not drive demand.

Participation in staking also declined. Only 22% reported staking activity last year, which marks a five-point drop from last year.

Related Reading: UK Watchdog Seeks Crypto Industry Feedback on Investment Reforms

What the Data Shows Going Forward

The FCA data does not indicate a collapse of any kind. UK crypto ownership remains well above 2021 levels, and the current data only shows caution after heavy losses.

Retail users appear more selective as larger balances dominate and small holders step aside.

Going forward, regulation will play a major role in market confidence next. 

Clear rules may draw some users back, while others will choose to remain on the sidelines until markets stabilize.

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