Reduce living expenses first during a downturn... 36% of American crypto investors cut back on spending

Recently, as the adjustment period in the virtual asset market has extended, a survey shows that the spending power of American cryptocurrency traders is rapidly shrinking. The exchange CEX.IO states that over one-third of respondents have cut their daily expenses due to market declines.

CEX.IO surveyed 1,100 of its active US users. The survey indicates that the price of Bitcoin (BTC) has fallen about 40% from its October 2025 peak, meaning many individual investors are experiencing “unrealized losses.”

36% cut expenses, delaying home and car purchases

36% of respondents said the market situation is the direct reason, leading them to reduce their daily spending. Among them, 10% reported making “significant sacrifices” to maintain their current holdings.

Additionally, 37% said they postponed or canceled purchase plans due to cryptocurrency losses, and 21% delayed major financial decisions such as buying a home, a car, or renovations. CEX.IO analysis states: “Although the bear market from 2025 to 2026 has not caused systemic shocks like past cycles, its burden is quietly manifesting at the household level.”

Position information “not disclosed” becomes mainstream… feeling “isolated and helpless” in response to market declines

Of particular note, the survey shows that investors’ responses to falling markets are conducted in an “isolated” state. Only 5% of respondents said others “completely understand” their holdings and valuations, with most sharing partial information or keeping it entirely confidential.

Cash flow pressure has also been confirmed. 77% said they have no debt related to cryptocurrencies, but since October 2025, 38% have experienced some form of financial hardship. Specifically, 25% have used savings, and 12% have missed payment deadlines or delayed settlements. Calculated at the Korean won to US dollar exchange rate (1 USD = 1477.50 KRW), the burden of living costs in USD terms is also more perceptible.

79% choose “hold or increase”… in Europe, banking selection criteria are also changing

Despite this, investment plans have not changed dramatically. About half of respondents said cryptocurrencies account for more than 30% of their investable assets, but 73% said their main income or business plans remain unchanged. 79% plan to “maintain or increase” their holdings over the next six months, indicating strong willingness to hold during price adjustments.

Meanwhile, in Europe, cryptocurrency services are beginning to influence people’s choice of financial institutions. A survey of about 6,000 investors in Germany, Italy, Spain, and France by Börse Stuttgart Digital shows that 35% are willing to switch their primary trading bank if better crypto services are offered. About one-fifth expect their main trading bank to provide crypto access within three years, which some observers interpret as a sign that digital assets may accelerate their integration into mainstream finance.

Summary by TokenPost.ai

🔎 Market interpretation - Among 1,100 active US cryptocurrency investors, 36% have cut living expenses due to market declines, indicating that the bear market is transmitting to “household consumption” - Bitcoin has fallen about 40% from its October 2025 high, leading to “unrealized losses” accumulating, and while the immediate feeling is calm, pressure persists - The level of investment information sharing is extremely low (only 5% share fully), and market decline pressure manifests as “isolated responses” 💡 Strategic points - First, check cash flow status such as living expenses and loan repayments: the higher the proportion of volatile assets, the more critical cash buffers are to avoid “selling at the worst times” - Major expenditure decisions (buying a home, a car, renovations) should be independent of market fluctuations and re-planned based on personal income stability and debt situation (21% have already delayed) - Despite 79% holding or increasing, the mindset appears stable, but most choices may not suit individuals: it is recommended to adopt rule-based approaches, such as dollar-cost averaging/batch buying, setting risk limits (maximum loss), etc. - As shown in the European case (35% willing to switch banks for better services), cryptocurrencies are integrating into financial infrastructure: when choosing exchanges or banks, check fees, custody, withdrawal stability, and compliance 📘 Terminology explanations - Unrealized loss: the loss calculated based on assessed value before selling assets (becomes “realized loss” upon sale) - Bear market: a market phase characterized by long-term price declines or dominant downward trends - Position: the investment status of holding (long) or selling (short) a specific asset - Cash flow: the inflow of funds such as wages or business income and the outflow such as living expenses, interest, and principal repayments - Custody: the function of financial institutions or service providers to securely hold and manage assets for clients

💡 FAQ (FAQ)

Q. What do American investors most likely cut first during a bear market? In the survey, 36% cut daily expenses due to market declines, with 10% making “significant sacrifices” to maintain their positions. Additionally, 37% postponed or canceled purchase plans, and 21% delayed major decisions such as buying a home, a car, or renovations.

Q. Despite losses, why do up to 79% still say they “hold or increase”? Some investors view “long-term holding” as a strategy, seeing declines as buying opportunities, or because they are already in a loss zone and prefer to hold rather than sell. However, since individual income stability, emergency funds, and debt situations vary, it is safer to determine investment proportions, batch buy-in strategies, and loss limits based on personal standards rather than blindly following others.

Q. What does “changing banks for better crypto services” in Europe mean? A survey of investors in four European countries shows that 35% are willing to switch their main trading bank for better crypto services. This signals that digital assets are surpassing investment applications and becoming a factor influencing choices in mainstream financial services such as deposits, remittances, and asset management. It also suggests that competition among banks for custody and related services may intensify in the future.

TokenPost.ai notes: The article is summarized using a language model based on TokenPost.ai. Some main content of the original text or factual accuracy may be omitted.