Last year’s crypto winter left investors and industry players dry. After the crypto quake of 2022, the majority of prospective institutional investors are now afraid to delve into virtual digital assets. In its new survey, JP Morgan found that 72 percent of institutional e-traders are now skeptical about experimenting with cryptocurrencies in 2023. The volatility of the crypto market turned out to be the biggest reason that turned off hefty investors.
JP Morgan surveyed 835 dealers in sixty international locations between January 3rd and 23rd this year. It released its findings as part of the seventh edition of its e-Trading Edit survey, Cointelegraph reported on Thursday February 2nd.
Of the overall respondents to this survey, 22 percent were concerned about crypto companies to collapse due to liquidity constraints and 30 percent blamed recession-related risks for keeping them out of the cryptosphere.
Around 26 percent of respondents also indicated that future trading outcomes will be affected by inflation.
Crypto hesitation weighed on global trader sentiment after promising projects like Terra And FTX failed dramatically last year. The crash of such projects against the backdrop of the post-COVID-19 recession, back-to-back hack attacksand investors’ low risk appetite cost the entire industry over US$200 billion (around Rs.16.38.82 billion) in losses last year.
In addition to the volatile nature of crypto assets, the rate hike introduced by the US Federal Reserve in 2022 has also emerged as a reason why institutional investors may want to take a moment before investing in crypto.
in one report Released last year, Capgemini said that 71 percent of high net worth individuals (HNWIs) had invested in crypto. At the time, the research firm had interviewed 2,973 people whose wealth ranged from US$1 million (about Rs8 billion) to US$30 million (about Rs2.45 billion).
Crypto industry insiders have consistently said that institutional investments in crypto can help stabilize the position of crypto assets for longer periods of time.
Mammoth crypto players like binance And coin base have already been working on services that would focus on serving gigantic investors.
