If there is one thing that is synonymous with the cryptocurrency market, it is the volatility of pricing. This volatility has been one of the arguments for investing in cryptocurrencies, but it is also one of the primary reasons people do so. Its extremely volatile nature makes it an ideal option for fast returns as long as investors are ready to take the risk.
The market just underwent a crash, causing large assets to disintegrate beneath its weight. Most cryptocurrencies have suffered significant value losses from which they are currently attempting to recover. However, according to money managers, investors’ worries may not be finished, as cryptocurrency is poised for a huge correction next year.
Crypto Will Be King in 2022
According to a Bloomberg study, institutions want to invest heavily in cryptocurrency by 2021. According to the poll results, around 28% of all institutions are now involved in the cryptocurrency market in some capacity. One-third of the 28 percent said they expected to grow their positions in the crypto area in the following year.
Furthermore, money managers have stated that the market is still ready for a “big drop” in 2022. This is despite the fact that a significant number of institutional investors are investing in cryptocurrency and that 8 percent of organizations questioned, both those already involved and those not, stated they will boost their investments in cryptocurrency in 2022.
According to the money managers, the correction will occur as a result of a large selloff next year. This comes after over 75% of those polled felt cryptocurrencies were not an acceptable investment option for regular investors.
40% of institutions are bullish
CoreData Research discovered that 40% of institutions recognized cryptocurrency as a credible financial asset in a poll conducted for Natixis Investment Managers. One element that remained consistent was the necessity for space control. The poll comprised 500 institutional investors from various nations and financial sector participants such as central banks, sovereign wealth funds, and corporate pension plans.
The projection from the money managers — who presently control around $12.3 trillion in assets – might mean more bad news for the crypto sector. However, there is no way to predict whether the market will move in the direction of this prediction. Cryptocurrencies have been known to have their own minds, defying forecasts on several occasions.
However, the value of institutional investors’ participation in the market cannot be overstated. Cathie Wood, CEO of ARK Invest, believes that more engagement from institutional investors would propel Bitcoin above the $500,000 barrier.
