More than 50% of institutional investors expect or predict a correction in the cryptocurrencies future during next year. Would you like to know more about this idea?
Most institutional investors see this in black
More than 50% of institutional investors expect crypto markets to correct previous gains during next year. This according to a new global study. The survey was published by Natixis Investment Managers. This is an asset manager with $1.39 trillion in management.
The survey involved 500 institutional investors. They are from North America, Latin America, the United Kingdom, continental Europe, Asia, and the Middle East.
Therefore, to better understand these data, it should be noted that the answers were provided by institutional investors in all markets, and they were not limited to Bitcoin and cryptocurrency investors.
According to the survey, most institutions believe that Bitcoin and other crypto-assets will fall with their price down in 2022. Natixis Investment Managers states:
“Given all the factors at stake, institutions see the potential for corrections in several asset classes and sectors. A very popular cryptocurrency is at the top of the list, with more than half of the institutions calling for a correction. This continues with interest rate sensitive bonds (45%), equities (41%) and technology (39%).”
In addition to inquiries about asset prices, regulations also contain an address. The vast majority of companies surveyed believe that cryptocurrencies need more regulation before gaining wider acceptance.
“9 out of 10 predict that central banks will have to regulate cryptocurrencies. Few see the potential for cryptocurrencies to replace reserve currencies (25%) or fiat currencies (28%).
However, one-third believe that cryptocurrencies can level the playing field for developing countries. Only 29% think emerging market countries should consider cryptocurrencies as legal tender.”
Institutional investors do not sell cryptocurrency
The survey found an exciting thing. It seems that the expectation about the fall in cryptocurrency prices next year is growing. Mainly on the part of institutional investors who have not yet purchased any cryptocurrencies. Despite more than half the forecast of the cryptocurrency market, institutional investors holding digital assets are not going to sell at all.
“4 out of 10 consider cryptocurrencies to be a legitimate investment option, and of 28% of those who invest in cryptocurrencies, 90% say they will maintain (62%) or increase (28%) their allocation.”
Conclusion on cryptocurrencies future
In conclusion, most institutional investors expect a cryptocurrency correction in 2022. Almost everyone who has bought Bitcoin or other cryptocurrencies will then, despite the majority’s opinion, not sell.