Cryptos to stay in demand despite market slump, Fed's Harker says

The cryptocurrency market has been rattled in recent months by a series of high-profile failures and subsequent investment losses. Despite the bear market, tokens like bitcoin ( BTC-USD ) and ethereum ( ETH-USD ) will likely remain in demand, Philadelphia Fed President Patrick Harker said Friday, citing survey data. "The strength of investment and experimentation as reasons for participation in the market has remained steady and the socioeconomic groups most likely to acquire cryptocurrencies haven’t materially changed," Harker said, referencing a survey conducted in October 2022. "These patterns seem to suggest that cryptocurrencies will remain in demand by certain consumers despite the recent crypto winter," he added. Even so, Harker pointed out that less than 40% of survey respondents said they planned to buy more crypto in the future, down from over 50% in a January 2022 survey, highlighting a cooldown in demand. Earlier, Federal Reserve Board Governor Christopher Waller said don't be surprised if crypto assets go to zero .