According to a new survey by JPMorgan, 72% of institutional e-traders have indicated that they “do not plan to trade cryptocurrencies/digital currencies” in 2023.
In the seventh edition of JPMorgan’s e-Trading Edit 835 traders from 60 different countries were surveyed on technical advances and macroeconomic factors that will influence trading performance in 2023.
The survey revealed doubts among traders around digital assets. Only 14% of those surveyed stated that they will continue to operate in the digital asset market or that they will start doing so this year..
The remaining 14% said they did not plan to invest this year, but could in the next five years..
The vast majority of institutional traders surveyed by JPMorgan – 92% – stated that they had no exposure to the digital asset market in their investment portfolio at the time of the survey.which took place from January 3 to 23.
This may be due to the fact that almost half of those surveyed cited market volatility as the biggest challenge to getting good results on a day-to-day basis.
The quantitative tightening measures imposed by the US Federal Reserve in 2022 may also have played a role, as 22% cited concerns about the availability of liquidity as the most influential factor hindering the performance of operations.
The survey results come just months after investor and trader confidence in the cryptocurrency market plummeted following the catastrophic collapse of the Terra (LUNA) ecosystem and trading platform FTX in 2022..
In another JPMorgan survey, 30% of respondents cited the risk of recession as the most influential macroeconomic factor to pay attention to, while 26% believe that inflation will have the biggest influence on results of operations.
It should be noted that Trading typically refers to entering and exiting securities or assets in a matter of weeks, days, and even minutes with the goal of making short-term profits, while investors take a longer-term perspective..
Last year, a survey of institutional investors sponsored by crypto exchange Coinbase revealed 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, from June, also found that 71% of high net worth individuals have already invested in cryptocurrencies, while many others are adopting longer-term strategies instead of day-to-day trading.
In a separate finding, The survey found that 12% of traders saw blockchain technology as the most influential technology in shaping the future of trading, compared to 53% for artificial intelligence and machine learning-related technologies..
These numbers are in stark contrast to the 2022 poll, in which blockchain and AI each received 25% of the vote..
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