The recent cryptocurrency market sell-off may have influenced investors’ decisions to participate, as the future remains uncertain. Despite the uncertainty, some investors see the current bear market as an opportunity to lay the groundwork for future gains.
According to recent research by Nickel Digital Asset Management, which was shared with Finbold on November 9 and shows that 92% of professional investors, popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are currently valued at attractive levels and show a positive outlook for the industry.
The study based on comments from 200 professional investors managing $2.2 trillion in assets across seven nations concluded that, on the whole, the investors feel that buying cryptocurrencies now will probably have superior returns in five years.
The study also showed how professional investors responded to the market sell-off, with 56% of them decreasing their holdings. In other places, 14% claimed that the widespread correction has caused them to “dramatically cut holdings.” It’s interesting to note that 55% of respondents said they’ve been exposed to cryptocurrency for longer than three years, even though their overall experience has been favorable.
The majority of professional investors generate profitable returns
In terms of returns, over 72% of the investors stated that they had seen gains from their exposure to cryptocurrencies, and 24% evaluated their returns as “extremely positive.” Only 6% have suffered losses, while 12% have come out even.
Institutional investors had a major part in the previous bull market in general, and they may have a major impact on the sector’s ability to reach new highs. Additionally, in the midst of the current correction, a number of signs have appeared that could signal the return of professional investors.
On November 3, Finbold stated that the amount of stablecoin entering the spot exchange has reached a new record high. Institutions have historically used this statistic to assess market developments.
Extended market sell-off
The FTX cryptocurrency exchange’s financial crisis has put major selling pressure on most assets, even as the market appeared to settle and bottom. The market lost more than $100 billion in a single day at one point.
Notably, the subsequent examination of the FTX’s collapse, particularly from a regulatory aspect, could have an impact on the choices made by professional investors.
Notice: Nothing on this website should be regarded as investment advice. It is speculative to invest. When you invest, your money is at stake.
