Major Investors Expect a Fall in the Crypto Market in 2022!
Institutional investors expect a significant correction in 2022 and thus a decline in the crypto market.
Cryptos have taken a beating in recent weeks. Prices fell sharply, but professional investors with lots of money expect an even bigger correction. Not immediately, but in 2022. This is according to a study published by Natixis Investment Managers.
Decline crypto market
The study was published last week. The results of the global survey of institutional investors are described herein. The company surveyed 500 institutional investors who collectively manage $13.2 billion in assets for public and private pensions, insurance, foundations, endowments and sovereign wealth funds worldwide.
Investors were asked which markets will undergo a major correction next year. While institutions see the potential for corrections across a range of asset classes and sectors, the survey results state, “They think the main contender for a major correction next year will be cryptocurrencies.”
At the top
Cryptocurrency tops the list of correction problems according to Natixis. More than half of the institutions surveyed see a correction coming. Next on the list are interest rate sensitive bonds (45%), equities (41%) and technology (39%).
Despite forecasting a major correction for the crypto market, they still see opportunities: “Even with crypto leading the way for correction, institutions are starting to warm to digital currencies.” Natixis added: “Four in 10 consider crypto a legitimate investment option, and of the 28% who invest in crypto, 90% say they will maintain their allocation (62%) or increase (28%). Meanwhile, 87% of institutional investors expect central banks to eventually regulate cryptocurrencies.
Reason why so many people still get into cryptos? According to global investment bank Goldman Sachs, that’s the fear of missing out (FOMO)!
