Bitcoin price gains can draw new buyers into crypto by lifting expectations for future returns, a Federal Reserve Bank of Cleveland experiment found.

According to the report, participants shown Bitcoin’s previous 12-month performance became more bullish on crypto. They were about 2.5 percentage points more likely to own it in a later survey, researchers found. With roughly 11% of respondents owning crypto before the experiment, that change amounted to about a 23% increase in the likelihood of ownership.

The results offer rare experimental evidence for a dynamic long associated with speculative markets: past gains can influence what investors expect next and, in turn, where they put their money.

Researchers also found that the response…