A new survey by JPMorgan Chase shows that 72% of institutional traders “have no plans to trade cryptocurrency” while 14% plan to trade crypto within five years. Institutional traders also expect “recessionary risks” to have the biggest impact on markets in 2023.
JPMorgan Institutional Merchant Survey
Global investment bank JPMorgan Chase released the results of its annual “e-commerce liberalization” survey on Thursday. The survey, which was conducted in January, provides “insight into the forecasts for the year ahead,” the bank said, adding that 835 institutional merchants in 60 global locations took part in the survey.
The survey asked institutional traders about their plans to invest in cryptocurrency. JPMorgan in detail:
72% of the traders surveyed “have no plans to trade crypto/cryptocurrency,” with 14% predicting that they are not currently trading but plan to trade within 5 years. 8% are currently trading and 6% are not currently trading, but plan to do so within one year.
Moreover, institutional traders predicted that cryptocurrencies and digital currencies will “experience the largest increase in electronic trading volumes over the next year.” In addition, “100% of the responding traders expected an increase in electronic trading activity,” JPMorgan noted.
Institutional traders on recession and inflation
The survey also asked institutional traders about their economic outlook. JP Morgan explained, “Traders expect recessionary risks to have the greatest impact on markets in 2023, closely followed by ‘inflation’ and ‘geopolitical conflict’.
For traders anticipating the impact of “inflation” on the markets, we asked them “How do you view the impact of inflation when pricing in it for 2023?” Whereas, 44% of traders expected lower inflation.
Furthermore, “58% of traders surveyed in the US expect inflation levels in the US to remain flat, and 41% of traders surveyed in the UK expect inflation to decline,” JPMorgan described.
While most institutional traders surveyed by JPMorgan do not plan to invest in crypto, several other surveys show stronger institutional interest in the asset class. A survey by asset management firm Devere Group found that 82% of millionaires have asked their financial advisors to add cryptocurrencies, including bitcoin, to their investment portfolios. Another survey by Nickel Digital Asset Management found that institutional investors expect a “strong year ahead for Bitcoin” and 65% agreed that BTC could reach $100,000. Last month, global investment bank Goldman Sachs ranked bitcoin as the best-performing asset of the year.
What do you think of this JPMorgan survey? Let us know in the comments section below.
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