KPMG predicts a crypto recovery for the rest of the year 2022

KPMG predicts a crypto recovery for the rest of the year 2022

Since the investments go back to liquid cryptocurrencies and blockchain technologies, the analysts from KPMG do not yet see a valley sole.

A continuing sluggish pace of investors with deep pockets when it comes to crypto, the industry has on the best way to end the year 2022 in terms of the dollars issued far below its latest all -time highs.

at the end of June, crypto and blockchain investments amounted to a total of $ 14.2 billion. In 2021, investors invested an all-time high of $ 32.1 billion in the industry, mainly driven by institutional actors.

"Before 2018 most of the crypto investments came from private customers," KPMG wrote on a Tuesday Report . "The investor profile has changed since then, with institutional and corporate investors now making a much larger proportion of the investments."

According to KPMG, the current macroeconomic landscape has caused crypto to be correlated more closely with wider markets, which has been more likely to act like a risk value in the past few months.

cryptos had trouble turning around this year. Bitcoin and Ether have fallen by more than 50 % since the beginning of the year, and - without a significant upward movement - analysts do not expect any rally.

"Unfortunately, Bitcoin behaves like a technology share in inflation," said Patrick Feeney, former hedge fund dealer and founder of Feeney Factor. "[Bitcoin is] should be digital gold, but it just doesn't work that way lately."

For the rest of the year 2022, KPMG calls for a "slowdown of crypto interest and investments, in particular from retail companies that offer coins, tokens and NFTS".

The changeover to decentralized financing will probably survive the market deposition, the analysts from KPMG found.

"Crypto and blockchain investments will increasingly focus on the infrastructure: While investments in cryptocurrencies are expected to decrease, the use of blockchain will probably continue to focus when modernizing the financial markets," the report says.

areas that are ripe according to companies for innovations: stable coins, blockchain compliance and partnerships between crypto and traditional companies to approach environmental, social and governance issues (ESG).

KPMG is confident that "well-managed crypto companies with healthy risk management guidelines, long-term vision and strong cost and risk management facilities" can survive the next six months.

others not.

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The contribution KPMG predicts crypto-recovery for the rest of the year 2022 is not financial advice.