In a survey conducted by investment bank JP Morgan, nearly one third of the investors taking part in the survey characterized cryptocurrency as the “rat poison” and predicted that it would a temporary fad.
The survey conducted at the firm’s 24th macro, quantitative and derivatives conference on and June 11 in London. The result was released on Tuesday. There were some 3,000 investors from around 1,500 institutions. As a result, the investment bank revealed that one of three investors stated crypto’s as “rat poison” and other than that 16% of investors predicted would be a fad. They further found out that only 10% of investors trade in cryptocurrencies and those who do not, out of them only 20% have plans to start trading them. When they were asked about their investments, 40% revealed that they are investing in cryptocurrencies.
In the past also billionaire investors and Berkshire Hathaway CEO being the critic of the crypto bitcoin mentioned it as “rat poison squared” and the result of this survey seems to agree with his saying by the investors
Another report suggesting that many institutional investors don’t have any confidence in cryptocurrency now and the recent report from JP Morgan also joining with it and shows a disappointing picture of interest in cryptocurrencies among those investors.
This also proves by the firms who do not invest in crypto’s around 80% of them did not expect to start investing or trading in cryptocurrencies. Despite the hype created recently in the world of crypto’s when Tesla owner Elen Musk candidly talked about his investment in crypto’s, also Microsoft, PayPal, etc backing up the investment, the enthusiasm could not be seen among investors.
The world’s largest cryptocurrency Bitcoin declined to a five-month law on Tuesday. The losses derived from china’s deepening crackdown on mining and trading cryptocurrencies. 95% of all the investors’ participants indicated that increasing frauds related to cryptocurrencies are the main influencer of them keeping distance for now. The cryptocurrency market is extremely volatile this is also the reason. Also, many countries have very strict regulations for cryptos. Which do not excite many firms? $ 1 trillion being wiped off from the global crypto market due to the crash of bitcoin is also a big enough reason. Two of JP Morgan’s top strategists Marko Kolanove and Dubravko Lakas- Bujai also wrote: “investors view on cryptocurrency’s future is much divided”.
Although in the survey there were many responses against crypt currencies. But many investors believed that cryptos hold value and can an asset around 42% of investors believed that cryptocurrency is here to stay and 90% stated that it will become an important asset. Some also believe that even though the bitcoin prices dropped, it is a good time to invest in bitcoin as the prices will surely increase as there is a limited exchange of cryptos.
This survey surely tells us the ongoing story in the world of cryptocurrencies that how volatile the market is and how many investors are still skeptical about the market.
© 2015-2023 Coinposters. All rights reserved!