A new JPMorgan Chase survey shows that 72% of institutional traders “have no plans to trade cryptocurrency,” while 14% plan to trade cryptocurrency within five years. Institutional traders also expect “recession risk” to have the biggest impact on markets in 2023.
JPMorgan Institutional Trader Survey
Global investment bank JPMorgan Chase published the results of its annual “e-Trading Edit” survey on Thursday. Conducted in January, the survey provides “a glimpse of predictions for the coming year,” the bank said, adding that 835 institutional traders in 60 global locations participated in the survey.
The survey asked institutional traders about their plans to invest in cryptocurrencies. JPMorgan detailed:
72% of surveyed traders “have no plans to trade cryptocurrencies/digital currencies”, and 14% predicted that they are not currently trading, but plan to trade in 5 years. 8% are currently negotiating and 6% are not currently negotiating, but plan within 1 year.
Additionally, institutional traders predicted that cryptocurrencies and digital currencies “will see the largest increases in e-commerce volumes over the next year.” Additionally, “100% of responding merchants predicted an increase in electronic trading activity,” JPMorgan noted.
Institutional traders on recession and inflation
The survey also asked institutional traders about their economic outlook. “Traders predict ‘recession risk’ will have the biggest impact on markets in 2023, closely followed by ‘inflation’ and ‘geopolitical unrest’,” JPMorgan explained, explaining:
For traders who predicted “inflation” would have an impact on markets, we asked “What is your view of the impact of inflation when pricing for 2023?”, with 44% of traders predicting inflation will decrease.
Additionally, “58% of US merchants surveyed expect US inflation levels to stabilize and 41% of UK merchants surveyed predict inflation will decline,” JPMorgan described.
While the majority of institutional traders surveyed by JPMorgan do not plan to invest in cryptocurrency, several other surveys show increased institutional interest in the asset class. A survey by asset management firm Devere Group found that 82% of millionaires have asked their financial advisers about adding cryptocurrencies, including bitcoin, to their portfolios. A different survey by Nickel Digital Asset Management found that institutional investors expect “a strong year for bitcoin” with 65% agreeing that BTC could reach $100,000. Last month, global investment bank Goldman Sachs ranked bitcoin as the best performing asset this year.
What do you think of this JPMorgan survey? Let us know in the comments section.
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