Bitcoin is the favorite of financial monsters despite the market crash

Bitcoin is getting more and more popular, but… – Return in 2021 hedge funds focused on cryptocurrencies outperformed traditional funds. Given these results, are they now betting on new finance assets?

Hedge Funds and Cryptocurrencies: (Always) Cautious Opening

PricewaterhouseCoopers (PwC) published a report onAdoption cryptocurrencies traditional hedge funds. The document contains key figures on this issue. These data are obtained, in part, from a survey conducted in the first quarter of 2022 with the participation of 89 hedge funds.

As well as 3 statistics provide an overview of the current and future level of use of these funds in cryptocurrencies:

  • About a third of the study participants invest in digital assets;
  • 57% of funds already invested in cryptocurrencies have allocated at least 1% of their assets under management to this sector;
  • At the same time, 2/3 of these funds plan to increase their investments in the industry by the end of 2022.

What do these numbers show? These data indicate, on the one hand, gradual adoption cryptocurrencies by hedge funds. But they also show, on the other hand, limited impact the latter to this new asset class.

How do these funds explain their cautious approach against cryptocurrencies? Survey respondents mention “regulatory and tax uncertainty” as a major barrier to investment in this sector.

Particularly hedge funds. fear 2 points rules related:

  • Differences in the regulatory framework for cryptocurrencies at the global level;
  • Lack of clarity in guidelines regarding the management of this asset class.

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Cryptocurrency Bear Markets: Are Funds Still Bullish on Bitcoin and Its Cadets?

A better understanding of the context allows better interpretation of previous data. crypto bear markets make this study special. Really, Bitcoin (BTC) and its younger players are experiencing a bear market in 2022. Thus, the bullish rally of 2021 has given way to a cryptocurrency winter this year.

the fall from the price bitcoin well illustrates the scale of the fall of the markets. However, the price of the cryptocurrency has reached historical maximum near $69,000 in November 2021. After that failed to reconnect with $50,000 in 2022. He will even return under bar $30,000 This year.

What does this knowledge of context add to the analysis of the figures published by PwC? According to these data, these funds, already investing in cryptocurrencies, want to increase their exposuredespite these market turmoil.

This prospect is clearly encouraging for the cryptosphere. But these statistics reveal only one at the moment intention. Reality-shaping decisions can actually change as the situation changes.

One more question can serve as the conclusion of this article. BUT strong bullish recovery in the cryptocurrency markets Will it be mechanically accompanied by an increase in investments in cryptocurrencies by these means?

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