A JPMorgan survey of institutional traders found that 72% don’t plan on trading cryptocurrencies or digital assets this year.
That’s compared to about a quarter of traders who said that last year.
Meanwhile, only 8% said they were actively trading cryptos.
Crypto tokens may have finally lost their shine on Wall Street, despite signs of strength to start the year in big-cap tokens like bitcoin and ether.
But despite the recent strength, 72% of traders say they don’t have any plans to trade crypto or digital assets in 2023, according to a survey from JPMorgan. That’s compared to about a quarter of traders who said that a year ago.
Amid the souring sentiment around crypto, just 8% of traders said they currently were trading cryptos, and 14% said that they planned to within five years. Meanwhile, 6% noted that they did not currently trade cryptos but planned to do so within the next 12 months.
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Cryptocurrency prices plummeted as investors started to fret about rising interest rates.
Crypto heavyweights like Coinbase and FTX dominated Super Bowl LVI’s halftime ad slots.
Stablecoin TerraUSD slipped away from $1 – and its sister token luna crashed to zero.
Celsius Network froze all its customers’ funds – after promising to never act like a bank.
Bitcoin fell under $20,000 to trade below its 2017 all-time high.
Hedge fund Three Arrows Capital defaulted on a loan and was ordered into liquidation.
FTX filed for bankruptcy after a sell-off in its native token triggered a solvency crisis.
Former FTX boss Sam Bankman-Fried was arrested by Bahamian officials on fraud and money-laundering charges.
Binance tried to reassure investors of its financial strength – and customers pulled $6 billion out of the exchange.
10/10 SLIDES
That dim view aligns with some other heavyweights on Wall Street. For instance, JPMorgan CEO Jamie Dimon has repeatedly dismissed bitcoin and crypto. Last month, he slammed bitcoin as a “hyped-up fraud,” and in December he likened cryptocurrencies to “pet rocks.“
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The JPMorgan survey was conducted in January, after a dismal 2022 for the crypto sector that saw bitcoin plunge nearly 70%.
The November collapse of FTX, the world’s second-largest cryptocurrency exchange at the time of its bankruptcy, and the ensuing spillover to cryptos has seemingly left a investors with a taste aversion to digital assets. The FTX crash also followed the collapse of other crypto platforms last year, like Voyager Digital and Celsius.
And while bitcoin is up 39% from the start of this year, that isn’t enough to convince Wall Street to take on more bets, especially given an already challenging macroeconomic environment and a Federal Reserve still trying to tame inflation with more rate hikes.