72% of institutional traders are crypto-skeptical this year: JPMorgan

cointelegraph.com:

A whopping 72% of institutional e-traders have signaled “no plans to trade crypto/digital coins” in 2023, according to a new survey conducted by JPMorgan.

The seventh edition of JPMorgan’s e-Trading Edit surveyed 835 traders from 60 different “global locations” about the technical developments and macroeconomic factors that will influence trading performance in 2023. The survey was conducted between Jan. 3 to Jan. 23, 2023.

The survey revealed hesitation among traders around digital assets. Only 14% of respondents said they will either continue to trade in the digital asset market or begin trading this year. 

The remaining 14% of respondents, said they didn't plan on investing this year but may do so within the next five years.

92% of the institutional traders surveyed by JPMorgan did not — at the time of the survey — have any exposure to the digital asset market in their investment portfolio at the time of the survey.

This may be due to the fact that nearly half of the respondents cited volatile markets as the biggest challenge to perform well on a day-to-day basis.

The quantitative tightening measures imposed by the United States Federal Reserve in 2022 may have played a factor too, with 22% citing liquidity availability concerns as the most influential factor impeding trading performance.

The survey results come just months after investor and trader sentiment in the cryptocurrency market dipped following the catastrophic collapses of the Terra LUNA ecosystem and trading platform FTX in 2022.

In another JPMorgan poll, 30% of respondents cited recession risk as the most influential macroeconomic factor to look out for, while 26% believe inflation will most influence trading outcomes.

It should be noted that trading typically