In a recent survey conducted by JPMorgan Chase & Co., findings indicate that a significant portion of institutional traders are hesitant to delve into the realm of cryptocurrencies, signaling a cautious sentiment within the financial industry.
According to the 2024 e-Trading annual survey, which garnered insights from over 4,000 institutional traders worldwide, a staggering 78% expressed no intentions of engaging in cryptocurrency trading over the next five years. This reluctance marks a notable contrast to the fervor witnessed during the peak of the digital currency boom.
Furthermore, the survey highlights a diminishing enthusiasm for blockchain technology, with only 7% of participants considering it as an influential force shaping the future of trading. This figure starkly contrasts with 25% recorded in 2022, underscoring a shifting perception within the trading landscape.
In contrast, artificial intelligence (AI) and machine learning have emerged as the frontrunners in terms of anticipated impact on trading, with 61% of respondents foreseeing their dominance over the next three years, signaling a growing reliance on advanced technologies to navigate evolving market dynamics.
Despite the prevalent skepticism towards cryptocurrencies, a marginal uptick was observed in the number of institutional traders actively involved in the digital currency sector, with 9% currently engaging in crypto trading, up from 8% in the previous year. Additionally, 12% of traders expressed intentions to venture into cryptocurrency trading within the next five years, reflecting a cautious yet evolving sentiment toward digital assets.
The survey also shed light on key macroeconomic factors expected to influence the broader market in the coming year. Notably, inflation, the U.S. election, and recession risk were identified as the top three catalysts by survey participants, underscoring the importance of macro events in shaping market sentiment and investment strategies.
While the financial landscape continues to evolve, JPMorgan’s CEO Jamie Dimon remains steadfast in his skepticism toward cryptocurrencies, likening bitcoin to a “pet rock” and advising against involvement in the digital asset space.
As institutional traders navigate an increasingly complex trading environment, the findings of JPMorgan’s survey offer valuable insights into prevailing sentiments and emerging trends within the financial industry.
