According to new research from London-based digital assets hedge fund manager Nickel Digital Asset Management (Nickel Digital), institutional investors and wealth managers are starting to become more optimistic about the crypto market.
Nickel Digital, which was founded by senior traders and investment professionals formerly from major financial institutions including Goldman Sachs and JPMorgan, commissioned research with 200 professional investors from across seven countries who collectively manage around $2.2 trillion in assets and found more than two out of three (67%) believe the current crypto winter is either over or has less than six months to run.
The study found 9% believe the bear market in cryptocurrencies and digital assets is over while 58% say it will end within six months at the latest.
They have been buoyed by the recent performance of bitcoin which has rallied from previous lows and more than a fifth (21%) questioned believe valuations will start to rise over the next six months with another 6% saying there will be no further declines in valuations.
However, the research shows professional investors are still expecting some volatility over the next six months while the crypto winter starts to ease.
