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63% of Traders Bearish on Crypto With Possibility of Upcoming Recession, Study Reveals

According to the most recent Charles Schwab Trader Sentiment Survey, 90% of traders believe that a US economic recession is highly likely, with 74% of them convinced that it will start this year.

The post 63% of Traders Bearish on Crypto With Possibility of Upcoming Recession, Study Reveals appeared first on BeInCrypto.

According to the most recent Charles Schwab Trader Sentiment Survey, 90% of traders believe that a US economic recession is highly likely, with 74% of them convinced that it will start this year.

As per the survey, 18% of traders are now most worried about the possibility of a recession, an increase of 6% from the previous quarter. That makes around 63% of the responding traders especially negative on cryptocurrency and meme stocks.

Crypto trader sentiments hit as technical recession expected

The survey also revealed that few traders intend to purchase cryptocurrencies, but they only include non-first-time investors and experienced buyers.

Meanwhile, a sizable majority (69%) believe that a recession would last a year or less, and only one in five people are withdrawing funds from the stock market to protect themselves against a market decline. Here, it is noteworthy that while the correlation between stocks and crypto has been highest this year, data report from research firm Kaiko underlined that Bitcoin’s rolling correlation with bonds and the Nasdaq fell to its lowest level in three months, indicating that the cryptocurrency market is drifting from conventional assets.

Barry Metzger, Head of Trading and Education at Charles Schwab said, “The good news is that across generations, traders are confident in their ability to navigate challenging markets, which speaks to their mindset, but also the level of access they have to exceptional tools, resources and education to help them develop trading strategies and make decisions.”

That said, inflation is still the traders’ top money and investment concern (21%), with almost 79% of them expecting a decline in that front by the end of 2023. The majority of traders also believe that the Fed will gradually slow down the interest rate hikes over the course of the rest of the year.

Especially when the Consumer Price Index (CPI) data for July showed a lower-than-expected 8.5% headline price increase year-on-year. 

Bitcoin’s performance as an inflation hedge

Edward Moya, senior market analyst at Oanda, told Fortune that the inflation trend could be positive for Bitcoin.

Moya stated, “I think for the rest of the summer, yes, inflation data [and] Fed-speak will dictate where Bitcoin goes. Bitcoin is still heavily correlated with equities right now, especially the Nasdaq,” he notes. “And this inflation report has given a lot of hope to the idea that the Fed won’t need to be as aggressive with tightening policy going forward.”

Previously, Be[In]Crypto had also quoted Swan Bitcoin’s managing director Steven Lubka, who said that Bitcoin is an inflationary hedge, but only in certain circumstances. Lubka claims that while some sources of inflationary pressure, like quantitative easing, are well-protected against by Bitcoin, others, like supply chain disruption, are less so.

At press time, BTC is maintaining a 24-hour range between $23,559.63 and $24,931.30, up almost 2% in the last one day, compilation by CoinGecko shows.

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The post 63% of Traders Bearish on Crypto With Possibility of Upcoming Recession, Study Reveals appeared first on BeInCrypto.

Source: Markets – BeInCrypto

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Altcoins

Crypto fund flows suggest ‘continued investor hesitancy’: CoinShares

Crypto funds saw a third straight week of inbound investments last week. However, CoinShares’…

The post Crypto fund flows suggest ‘continued investor hesitancy’: CoinShares appeared first on CoinJournal.

  • Crypto funds saw a third straight week of inbound investments last week. However, CoinShares’ James Butterfill says the low inflows suggest there’s “continued investor hesitancy.”

The crypto market has struggled to tag a positive sentiment, with September again proving a tricky month for bulls as prices remained largely within a long term downtrend going back to November 2021.

So while institutional investors continue to size up opportunities in the digital assets sector, flows into investment products have significantly remained low over the past few weeks.

James Butterfill, Head of Research at digital asset manager CoinShares, says the low inflows seen last week imply a “continued hesitancy” from investors.

Butterfill shared the outlook in the latest edition of the “Digital Asset Fund Flows Weekly Report”, which CoinShares published on Monday.

Crypto funds see third week of inflows

Fund outflows year-to-date are at more than $42 million, with the past three weeks seeing positive flows.

According to Butterfill, the low flows suggest institutional investors are still weighing up the market, particularly given the global macroeconomic environment.

Digital asset investment products saw inflows totaling $10.3 million last week representing the third week of inflows. The flows remain low implying continued hesitancy amongst investors, this is highlighted in investment product trading volumes which were $886 million for the week, the lowest since October 2020,” Butterfill wrote.

Bitcoin recorded minor inflows for a third week in a row, with $7.7 million (short bitcoin saw inflows of $2.1 million). Meanwhile, Ethereum registered $5.6 million in inflows last week to post a second positive week – but short Ethereum products hit outflows of $0.9 million.

Across the altcoin market, negative sentiment saw investors pull $3.5 million. Top outflows were in Polygon, Cardano and Avalanche.

The post Crypto fund flows suggest ‘continued investor hesitancy’: CoinShares appeared first on CoinJournal.

Source: CoinJournal: Latest Bitcoin, Ethereum & Crypto News

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