Institutional traders Keen On Artificial Intelligence Over Cryptocurrencies In The Future Of Trading
72% of traders surveyed ‘have no plans to trade crypto/digital coin,’ with 14% predicting they’re not currently trading but plan to trade within 5 years. 8% are currently trading and 6% are not currently, but plan on within 1 year. This is according to a survey by JP Morgan asking about plans to invest in cryptocurrencies.
Most of the 835 institutional traders in 60 global locations who participated in the survey pegged their reasons on ‘recession risk’, inflation, and geopolitical politics that will have a huge impact on markets in 2023.
Recently, the world bank warned that global growth has slowed to the extent that the global economy is perilously close to falling into recession. The World Bank credits “unexpectedly rapid and synchronous” monetary tightening around the world for the sluggish growth. The situation is dire enough, it adds, that “any additional adverse shocks” could lead to a global recession.
Instead, most institutional traders are looking to invest in Artificial Intelligence and machine learning as the most influential technology in shaping the future of trading. Accessible AI technology such as the recently hyped ChatGPT has made a shift in the minds of financial industry professionals. Last year, blockchain and distributed ledger technology tied for second with AI and machine learning with 25 percent of respondents declaring them the key to the future. Mobile trading applications came in first, with 29 percent.
Even so, the report shows that crypto will still hold a huge stake in trading “Crypto and digital coins, commodities, and credit are predicted to have the biggest increases in electronic trading volumes over the next year,” Institutions however choose to sit on the ‘wait and see’ bench as global inflation and recession continue to be the greatest fear in 2023.