The crypto market is going through one of its deepest cycles since the turn of the year. Some crypto forecasters were calling for a more positive outlook for the crypto market in November. However, events have changed things for the worse.
The US Federal Reserve (Fed) held on to the rate hike and the collapse of FTX further threw the market into chaos. Following recent events, investors withdrew most of their crypto holdings from FTX and other major exchanges.
Institutional investors are increasing crypto holdings
According to a Coinbase report in the Institutional Investor Digital Assets Outlook Survey, professional investors have been adding to their portfolios. That’s according to the survey conducted between September 21 and October 27 among 140 investors.
The total crypto assets of these investors was $2.6 trillion. This survey took place before the FTX incident, before the recent price downtrend.
Of the survey participants, 62% who already own crypto holdings have increased the size of their portfolio. This increase occurred within a year. Remarkably, only 12% of survey participants reduced their wealth over the same period.
This implies that institutional investors have taken a long-term stance on crypto assets with optimism about the future. Up to 58% of these investors are likely to increase their holdings over the next three years.
Overall, the general mood was for cryptocurrency bullish, with around 72% of respondents reaffirming their belief in cryptocurrency. This survey underscores the increasing acceptance of cryptocurrencies around the world.
The top three reasons for crypto investing cited in this survey are: investing in innovative technology, improved funding, and access to profitable opportunities.
Coinbase shares under the weather
Coinbase shares have taken a significant hit in the prevailing bearish market cycle. The stock (COIN) fell to a low of $40. It currently sits at around $45.57. COIN is trading at almost less than 90% of its all-time high of $357 set in November 2021.
Binance now officially has Coinbase Pro as the largest holder of Bitcoin obsolete. According to CryptoQuant. With over $8 billion worth of crypto removed from core exchanges, Binance Exchange; now has the largest store of BTC holdings.
Bitcoin price is trading above $16,500 l BTCUSDT on Tradingview.com
Coinbase CEO Brian Armstrong has struggled to allay fears of a possible collapse similar to FTX. In his tweets, he expressed his sympathy and stated that Coinbase has no material exposure to FTX and its affiliates.
He blamed risky activities and misuse of investor funds for FTX’s collapse. He assured users of the security of their assets and transparency in dealings.
He stated that in the future the crypto industry should build a better financial system based on DeFi and self-custody wallets.
Although cryptocurrencies have suffered losses recently, institutional investor positions suggest that there may be hope for a recovery.
Featured image from Pixabay, chart from TradingView.com
Source: Crypto News Deutsch