Institutional Investors Won’t be Seeking Crypto Investments in 2023 – JPMorgan
According to a recent JPMorgan Chase survey, most institutional investors are not considering investing in crypto this year.
72% of institutional investors who participated in the survey don’t plan to engage in cryptocurrency activities. In comparison, 14% stated that they are already trading—the rest plan to join the crypto space within the next five years.
These results shouldn’t be surprising since 2022 was one of the roughest years in crypto and the global financial system. The war between Russia and Ukraine, high inflation rates, political conflicts, and other macroeconomic factors stopped people from investing in risky assets.
Terra (LUNA) and UST’s crash, followed by the collapse of FTX, took the space by surprise and deepened the “crypto winter.” Prices fell as much as over 70% from their ATHs.
The survey further reveals that 30% of respondents predict that the recession will remain a significant threat in 2023.
One of the minor worries of crypto investors happens to be concerned about tighter regulations. The market’s wild volatility remains a factor that scares many respondents to the survey, highlighting the impact of FTX’s crash. The second and third most significant concerns are liquidity issues and workflow efficiency.
Nonetheless, the crypto market is undergoing a relief rally that led Bitcoin past its $24,000 resistance level on Thursday. At the time of writing, BTC is trading around $23,400.