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Crypto survey: only 8% of institutional investors expect prices to rise in 2023

by Thomas

Is the institutional market in a bear market? According to a survey conducted by editorialist Institutional Investor and sponsored by Coinbase, the majority of institutional investors don’t expect any rise in cryptocurrency prices for the year 2023.

A long-term view for institutional investors

A gloomy 2023 for cryptocurrency market investors? According to a survey conducted by Institutional Investor in collaboration with Coinbase, a significant price increase is not expected for the next three years.

According to the survey of 140 US institutional investors, half (53.6%) believe that cryptocurrency prices will stagnate in 2023. Worse still, about a third (29.3%) believe that prices will fall further next year:

Figure 1 - Institutional estimates of cryptocurrency trajectory in 2023

Figure 1 – Institutional estimates of cryptocurrency trajectory in 2023


While the majority of investors seem pessimistic about the state of the market, only 8% believe the downward trend can be reversed. This dynamic, which is not unique to cryptocurrencies, can be explained by the current global economic instability, where central banks are trying to contain inflation by raising their key interest rates.

However, financial instability is not stopping institutional investors whose interest in cryptocurrencies is growing by the day. 71% of respondents agree that the value of cryptocurrencies will increase in the long term. Of these, 45% strongly agree with this statement:

Figure 2 - Percentage of survey respondents who believe prices will increase over the long term

Figure 2 – Percentage of survey respondents who believe prices will increase over the long term


However, it should be noted that the survey was conducted between September and October 2022. During this period, FTX Group was not in bankruptcy proceedings, and the price of Bitcoin (BTC) was around $20,000. As a result, the results of the investigation might be different if it were conducted today.

The relationship of institutional investors to cryptocurrencies

Despite the general enthusiasm of institutional investors around this new asset class, there are many concerns that reduce the involvement of these players in the Web3 sector. Indeed, their greatest fears concern financial and legal issues:

Figure 3 - Response to the question:

The first concern of institutional investors (52%) is the still uncertain regulatory framework in many areas of the Web3. We have seen this in France with the European MiCA and TFR jurisdiction: while these regulations frame cryptocurrency exchanges, it leaves the issue of decentralised finance (DeFi) unresolved.

The second point of concern is related to the volatility of this market (48%) and the resulting risks of manipulation (36%). On the one hand, volatility prevents institutional investors from guaranteeing asset withdrawals without incurring losses in the short term. On the other hand, the risks associated with market manipulation threaten the integrity of investors’ capital.

The Web3 industry is still in its infancy and has a long way to go before it gains stability and popularity. For this reason, institutional investors have listed three factors that they believe would enhance the growth of the sector:

  • 7 out of 10 investors mention the increase in use cases;
    4 out of 10 investors want clearer regulation.

Contrary to the pejorative discourse regularly emitted by the various central banks around the world, institutional investors perceive cryptocurrencies as a technological sector, in which it is necessary to invest in order to allow the implementation of new uses.

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