According to a new survey conducted by JPMorgan, 72% of institutional e-retailers reported “no crypto/digital coin exchange plans” in 2023.
The seventh edition of JPMorgan’s e-Trading Edit surveyed 835 traders from 60 different global locations about technical developments and macroeconomic factors that will influence trading performance in 2023.
The survey revealed traders’ hesitation around digital assets. Only 14% of respondents said they would continue to trade in the digital asset market or start trading this year.
The remaining 14% of respondents said they had no intention of investing this year, but could do so over the next five years.
The overwhelming majority of institutional traders surveyed by JPMorgan – 92% – said they had no exposure to the digital asset market in their investment portfolio at the time of the survey, which was conducted from 3-23 January.
This may be because nearly half of respondents cited volatile markets as the biggest challenge to performing well on a day-to-day basis.
Quantitative tightening measures imposed by the US Federal Reserve in 2022 may also have played a role, with 22% citing liquidity availability issues as the most influential factor hampering business performance.
The survey results come just months after investor and trader sentiment in the cryptocurrency market plummeted following the catastrophic collapse of the Terra (LUNA) ecosystem and trading platform. FTX trading in 2022.
In another JPMorgan poll, 30% of respondents cited recession risk as the most influential macroeconomic factor to watch, while 26% believe inflation will influence business results the most.
It should be noted that trading generally refers to jumps in and out of stocks or assets over weeks, days and even minutes with the aim of making short-term profits, while investors have a longer-term perspective. term.
Last year, a survey of institutional investors sponsored by crypto exchange Coinbase found that 62% of institutional investors had invested in the digital asset market from November 2021 to the end of 2022, seemingly undeterred by the prolonged crypto winter.
A more recent study, in June, also revealed that 71% of high net worth individuals have already invested in cryptocurrencies, while many others are adopting longer-term strategies rather than day-to-day trading.
Related: A beginner’s guide to cryptocurrency trading strategies
In another finding, the survey revealed that 12% of traders consider blockchain technology to be the most influential technology in shaping the future of trading, compared to 53% for artificial intelligence and machine learning-related technologies. .
These figures contrast sharply with the 2022 poll, where blockchain technology and AI each received 25% of all votes.
