Large investors are still interested in cryptocurrencies. How many professionals have already invested in Bitcoin?
Analysts at investment firm Fidelity surveyed 1,052 institutional investors in the US, Europe and Asia. The survey yielded surprising results: despite the bearish trend, interest in crypto among professional investors remains relatively high. At least 58 percent of institutional investors were investing in digital assets in the first half of 2022 – up 6 percent from a year ago. We report on the details of the survey.
It should be noted that not only big market players are interested in buying cryptocurrencies, but also relatively small investors. This information is supported by recent statistics from analysts at Glassnode, which were published this week.
Overall, the experts looked at how the balance of certain addresses in the Bitcoin network was changing. It turned out that the coins were actively bought, even when their exchange rate was near its interim bottom this summer.
Who is buying cryptocurrencies
74 per cent of respondents expect to buy cryptocurrencies in the foreseeable future. 51 per cent of those surveyed are confident that crypto will show good returns in the medium term. According to Decrypt’s sources, this aspect of the survey is also on the rise, with only 45 percent of respondents holding this view in 2021.
Percentage of investors around the world who viewed crypto positively in 2021 and 2022
Tom Jessop, head of digital assets at Fidelity, commented on the survey results. Here’s a quote from the expert on what’s happening.
While markets have faced adversity in recent months, we believe digital asset fundamentals remain strong and the institutionalisation of the market over the past few years has allowed it to weather recent events.
Percentage of investors by region of the world who consider crypto to be an important part of their portfolio
However, it is worth noting that the study covers the period from January to June 2022, which is right up until the collapse of the coin market to its local bottom. In the first half of this year, investors were still putting a lot of money into crypto, despite falling prices.
The situation may have changed since then, as the price of Bitcoin and all other cryptocurrencies managed to rise until today, with the notional BTC never reaching the June $17,000 level since then. That means the likelihood of the industry hitting bottom today is higher than it was then, which inspires additional confidence in investors and allows them to take more risks.
Length of research on the Bitcoin chart
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The popularity of the crypto industry will continue to grow as fundamental innovations emerge. One of the latest such innovation is the integration of NFT into Twitter posts. Going forward, users of the social platform will be able to buy, sell and display their unique tokens directly in tweets. The integration, called NFT Tweet Tiles, displays illustrations in a special panel within the tweet and includes a button that allows users to jump to an advertisement to sell the token on a supported trading platform.
NFT Twitter integration teaser
The feature is still in the testing phase and currently works with four trading platforms – Magic Eden, Rarible, Dapper Labs, and Jump.trade. Collectively, these trading platforms cover several blockchains, including Etherium, Solana, Flow, Polygon, Tezos and Immutable X, Decrypt reports.
Recall, this week the deal to buy Twitter by billionaire Ilon Musk was closed. He promised to step up the fight against bots on the platform, expand freedom of expression in tweets, and promote initiatives related to crypto. We can expect to see many more interesting digital asset features in the future of the social platform.
Against this backdrop, Dogecoin, Ilon’s favourite cryptocurrency, has predictably risen. As a reason for the rise, Musk’s announcement that DOGE is being allowed into the social platform is also a reason for the rise. Overall, the cryptocurrency gave out about 75 percent growth for the week, with this figure surpassing the corresponding month’s result.
Changes in the Dogecoin DOGE exchange rate over different time periods
We believe that large investors will not turn their backs on digital assets, even despite the current conditions in the markets as a whole. An additional argument for this is the ability of coins to grow while the same niche equities are rolling down, which happened this week. So after the Fed's policy reversal, which will happen one way or another, digital assets will have even more new fans.
What do you think about this? Share your opinion in our Millionaire Crypto Chat. There we talk about blockchain, decentralisation and useful platforms.
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