Bitcoin

Crypto Market Trends: 71% Of Institutional Traders Avoid Crypto, But Interest Is Growing

1View


The crypto market has seen notable growth in institutional investment in recent years.

A JPMorgan survey of 4,200 institutional traders revealed that while interest in crypto is growing, 71% of respondents have no plans to trade crypto in 2025, down from 78% in 2024. However, 16% plan to trade crypto this year, and 13% are already trading, both showing an increase from last year.

Bitcoin’s price more than doubled in 2024, and the introduction of U.S. Bitcoin ETFs helped drive a 33% increase in global crypto ownership since 2023. Rising investor confidence and clearer regulatory frameworks have fueled this expansion. However, 71% of institutional traders still have no plans to trade crypto—a sign that adoption remains a work in progress. Encouragingly, this figure has improved from last year, indicating a gradual shift in sentiment.

Institutional Sentiment and Market Trends – One Of The Worst Liquidations In Crypto History

The crypto market witnessed a brutal shakeout on Monday, Feb. 3, as Donald Trump’s aggressive trade tariffs set off a chain reaction of panic selling, culminating in the largest liquidation event of 2025.

The sell-off wiped $400 billion from the total crypto market cap, triggering liquidations that surpassed the historic crashes of the COVID-19 and the FTX collapse. Over $2.2 billion in leveraged positions were wiped out in a matter of hours.

Bitcoin has recently fallen below the $98,000 mark, currently trading at $97,130. However, the biggest losses have been seen among altcoins, with Solana dropping below $200. Despite these declines, the overall sentiment around crypto remains positive, driven by growing institutional interest, regulatory improvements, and the broader adoption of digital assets.

(Source)

Despite these figures, 100% of surveyed traders plan to increase e-trading activity, particularly for less liquid assets. This indicates a shift toward digital markets, even if crypto adoption remains cautious.

Regional Growth in Crypto Ownership – South America Saw The Biggest Growth

Crypto ownership has expanded globally, with every region experiencing an increase over the past year. Supportive policies in various countries and clearer regulatory guidelines have played a crucial role in accelerating adoption.

According to Triple-A data, in 2024, approximately 562 million people owned cryptocurrency, representing 6.8% of the global population.

South America saw the highest growth, with ownership rising 116.5%, largely driven by hyperinflation in Argentina (18.9% ownership) and Brazil (17.5% ownership).

Oceania also experienced rapid growth at 114.3%, with institutional investors increasing their exposure despite a decline in retail investor deposits.

North America saw 38.6% growth, spurred by the approval of Bitcoin and Ethereum ETFs, with firms like BlackRock leading the charge.

Asia continues to dominate in absolute numbers, with over half of global crypto owners residing in the region, particularly in Singapore, where nearly a quarter of residents hold cryptocurrency.

Europe saw 60.3% growth, while Africa recorded 8.5% growth, the lowest among all regions.

(Source)

The approval of Bitcoin ETFs in January 2024 marked a major milestone for the industry. Institutional investors who previously hesitated due to regulatory uncertainty now have a more traditional and regulated entry point into the crypto market. Additionally, the U.S. government is showing more support for digital assets:

  • The SEC has scaled back its enforcement unit in 2025, signaling a more accommodative stance.
  • Donald Trump’s executive order established a sovereign wealth fund, which could include Bitcoin in its reserves.
  • White House “crypto czar” David Sacks emphasized the importance of bringing stablecoins onshore to maintain the dollar’s global dominance.

With Bitcoin’s price surge, more institutional involvement, and growing regulatory support, crypto is cementing its place in global financial markets. The rapid increase in global ownership, particularly in regions experiencing inflation and regulatory shifts, highlights the growing mainstream adoption. As regulations continue to evolve, more institutions are likely to explore digital assets, further expanding the crypto investor base in the years to come.

EXPLORE: SOL Price Tumbles Below $200: What Does Solana Price Analysis Reveal?

The post Crypto Market Trends: 71% Of Institutional Traders Avoid Crypto, But Interest Is Growing appeared first on 99Bitcoins.



Source link

Leave a Reply

Exit mobile version