In the latest survey by investment bank JPMorgan Chase, professional traders are looking to increase their crypto trading volumes in the next 12 months. Despite the recent market volatilities that caused major blowups in the sector, there is a positive outlook, particularly among institutional investors.
The survey, dubbed ‘‘the e-trading edit,’’ collects predictions globally for the next year from institutional crypto traders. Among the 835 institutions polled, 100% predict that they would bolster their electronic trading activities in cryptocurrencies, derivatives, and commodities.
When asked whether they plan to engage in any crypto activity this year, the respondents gave conflicting views. 72% said they had no such plans, 8% were currently trading, and 14% planned to join the space in the next five years.
Last year was a tough year for digital assets, and among the factors that caused what has now come to be known as ‘crypto winter’ are the macroeconomic elements. A combination of high inflation rates, political conflicts, and the resulting borrowing rate hikes drove investors away from riskier assets.
Investors’ take on macroeconomic factors
According to the survey, such macro-level factors are far from over, with 30% of the respondents predicting that recession will be a big threat in 2023. High inflation rates and geopolitical conflicts are the other external factors that could impact digital assets.
Despite the recent volatility, which seemed to have gotten the attention of the regulators, investors are least concerned about tougher regulations impacting crypto. Also, the least of investors’ worries is the emergence of another pandemic.
Regarding the daily trading challenge question, the top on the list among the respondents is a volatile market, perhaps underscoring fears about the FTX collapse. Liquidity availability and workflow efficiency came in second and third, respectively.
Aside from the mixed sentiment, the crypto market is currently staging a comeback. Bitcoin surged past the psychological resistance of $24k Thursday, trading as high as $24,157, before paring some gains to a modest $23,357 at press time.