Cryptocurrency Donations Surge 41% During Bear Market: A Paradox Explained
Despite the challenging conditions of the recent bear market, cryptocurrency donations have experienced a surprising surge, increasing by 41%. This unexpected trend highlights the resilience of crypto philanthropy and the growing trust in digital assets as tools for good.
Why the Increase? Crypto Philanthropy Thrives in Downturns
While previous bear markets were primarily driven by internal crypto-specific factors, the 2025 bear market was significantly influenced by global inflation, rising interest rates, and broader economic uncertainty. This paper examines the likely performance of cryptocurrencies during bear stock markets and periods of economic downturn, with a particular focus on their role as a haven asset. Ironically, this very downturn appears to have fueled increased crypto donations. But why?
Crypto Philanthropy Growth: A Billion-Dollar Impact
More than $1 billion in cryptocurrency has been donated to charitable causes in 2025 alone. This significant influx of digital assets underscores the increasing acceptance and usability of crypto for philanthropic endeavors. The anonymity and security offered by blockchain technology may also be attractive to donors, especially during times of economic instability.
Increasing Adoption: Charities Embrace Crypto
Increasing Adoption: 70% of Forbes’ Top 100 Charities now accept cryptocurrency donations. This wider acceptance provides more avenues for donors to contribute, leading to the observed increase. Charities are increasingly recognizing the potential of crypto donations to reach new donors and diversify their funding sources.
Challenges Faced by Crypto Fundraisers in Bear Markets
Challenges Faced by Crypto Fundraisers in Bear Markets: Reduced Valuations: One of the most immediate effects of a bear market is the sharp decrease in the value of cryptocurrencies. While the value of individual crypto holdings may decline, the underlying technology and the potential for long-term impact remain attractive to donors with a long-term vision.
Cryptocurrencies' Effect on Financial Markets
Cryptocurrencies have had a substantial efect on financial markets in recent years, and this efect has extended to the market for charitable donations (Tan and Tan 2025). Cryptocurrency, despite its volatility, continues to establish itself as a legitimate asset class and a viable option for charitable giving.
The 41% increase in cryptocurrency donations during the bear market demonstrates the evolving landscape of philanthropy and the increasing role of digital assets in supporting charitable causes. As crypto adoption continues to grow, we can expect to see even greater impact from crypto philanthropy in the years to come.