The cryptocurrency market is not just a temporary bubble, it is here to stay for a longer-term, according to the results of an institutional survey conducted by JPMorgan. Around 11% of the surveyed investors said that their firm either trades or invest in cryptocurrency assets.
According to JPMorgan’s survey covered by Business Insider, 7% of institutional investors said that crypto will become one of the most important assets in the future. Around 58% of the respondents said that the cryptocurrency market is here to stay.
JPMorgan surveyed around 3,400 investors from 1,500 institutions around the world. 89% of the investors mentioned that their firm does not have any position in the cryptocurrency market, but 22% of the respondents answered that their company is likely to invest in crypto assets in the future.
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Digital currencies now have a market cap of more than $1.5 trillion, which is up nearly $800 billion since the start of 2021. Bitcoin, the world’s largest cryptocurrency, is currently hovering around $50,000 with a total market cap of $930 billion. BTC accounts for nearly 60% of the total market cap of crypto assets.
Negative Perception about Cryptocurrency Market
While JPMorgan’s survey showed some positive trends regarding the perception of digital currencies, there are some negative points as well. Around 78% of institutional investors said that they are not planning to invest in the cryptocurrency market. 21% of the respondents termed cryptocurrencies as a ‘temporary fad’. Nearly 98% said that the fraud in the cryptocurrency market is ‘very much prevalent’. Despite some negativity, the overall perception about cryptocurrencies has changed dramatically in the last few months, mainly due to a massive institutional adoption by major Wall Street firms and asset management companies.
The overall market cap of digital currencies reached a record-high of $1.75 trillion in February 2021 after Bitcoin jumped above $58,000 and Ethereum crossed $2,000. The recent boom in DeFi tokens is helping the jump in the crypto market cap.