5 States Where Bitcoin Is Most Popular — and 5 Where It’s Not
Top 5 States Where Bitcoin Is Least Popular
On the other side of the spectrum are states where crypto activity is significantly lower than the national average, falling near the 1% mark.
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West Virginia: 0.84%
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Mississippi: 0.95%
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Kentucky: 1.10%
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Louisiana: 1.15%
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Alabama: 1.16%
These states tend to be more economically conservative, with smaller tech sectors and lower household incomes overall. Many residents in these regions traditionally lean toward established, lower-risk financial tools, and the infrastructure supporting digital assets may be less widespread.
Still, low crypto reporting doesn’t mean these states are uninterested. It’s more likely that residents are slower to adopt new financial technologies or participate in crypto activities that would require reporting on their taxes.
It’s also possible that smaller transaction sizes or basic holding activity simply don’t generate the tax events that show up in IRS data. What we see here is more a reflection of economic and cultural differences than a lack of awareness.
Breaking Down the Findings
One of the most notable trends is how dramatically crypto adoption changed between 2021 and 2022. Many states saw participation spike during the 2021 bull run, when Bitcoin hit record highs and the broader crypto market surged. Enthusiasm was high and many first-time investors jumped in.
But as the market cooled in 2022, participation dropped sharply across almost all states. Washington is a prime example, with participation falling from more than 6% of filers showing crypto activity to under 3% the next year.
This shift suggests that many Americans are still treating crypto as a speculative investment rather than a long-term hold or everyday financial tool. When prices rise, participation jumps, but when prices fall, activity slows. That kind of pattern shows an asset class still heavily driven by sentiment and market cycles.
Income is another clear dividing line. High-income households earning $500,000 or more reported crypto involvement at several times the rate of middle-income families. This isn’t surprising, as households with more disposable income simply have a wider margin for speculative or experimental investments. Meanwhile, middle-income families may be more cautious, prioritizing stability and traditional investments over volatile digital assets.
Overall, the data demonstrates that while crypto has gained visibility nationwide, meaningful adoption is still concentrated in specific regions and demographics.
Should You Dip Your Toes Into Bitcoin or Crypto Investing?
If you’re considering getting involved with Bitcoin or other cryptocurrencies, the study won’t give you a yes-or-no answer, but it does offer helpful context. People usually get into crypto when they have a financial cushion, a solid understanding of the risks and at least some comfort with digital platforms.
For many people, the most sensible strategy is to start small. Treat crypto as a supplemental part of your broader financial picture rather than a primary investment. This lets you explore the space without putting yourself in an uncomfortable position or risking money you need in the near future.
Ultimately, whether crypto has a place in your portfolio depends on your goals, your risk tolerance and the stability of your overall financial situation. For long-term investors looking to add crypto to their portfolio, the services of a fee-only financial advisor can help you make a more informed decision.
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This article originally appeared on GOBankingRates.com: 5 States Where Bitcoin Is Most Popular — and 5 Where It’s Not
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