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While the crypto market shows signs of resurgence with institutional giants entering the fray and Bitcoin nearing its all-time high, a new survey by none other than JP Morgan paints a different picture.
Some 78% of institutional traders at the banking giant have no plans to touch crypto in the next five years, confirming, well, what many expected from the traditionally crypto-averse firm.
This stands in contrast to broader crypto market sentiment - looking at the current risk appetite on the Fear & Greed Index, crypto market sentiment is currently at 72, up from last week's 63, and signals "greed".
Dimon's Shadow Looms Large
This shouldn't surprise anyone familiar with JP Morgan CEO Jamie Dimon's public pronouncements. He's famously called Bitcoin a "pet rock" with no intrinsic value, and his personal disapproval likely colors the sentiment within the bank.
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But wait, there's a twist: Despite the overall skepticism, a small but growing minority (12%) do plan to enter the crypto market within the next five years. This could be due to the recent approval of Bitcoin ETFs in the US, attracting big players like BlackRock and WisdomTree. Additionally, Bitcoin's 95% price surge in the past year might be tempting some traders.
Blockchain Gets Sidelined
Interestingly, the survey also reveals waning interest in blockchain technology, with only 7% of respondents seeing it as impactful for the future of trading. This is a significant drop from 25% in 2022, suggesting even within JP Morgan, blockchain's potential isn't fully recognized.
So, what does it all mean? While this survey reflects JP Morgan's internal culture, it doesn't necessarily represent the broader market. Despite institutional hesitation, crypto adoption continues to grow, fueled by regulatory advancements and price appreciation. However, concerns about inflation, geopolitical events, and potential recession remain valid considerations for all market participants, crypto or otherwise.
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