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KPMG predicts slowdown in crypto investments

A report from the international accounting and consulting company KPMG discusses a decline in crypto investments.

A report from the international accounting and consulting company KPMG discusses a decline in crypto investments.

The report stated that interest in crypto and investments are declining internationally. The data gave a clear indication that investments will continue to slow down for the remainder of this year. The crypto market is stagnant because investors are moving slowly, and investments are far lower than they were at their peak. The total value of investments in blockchain and cryptocurrencies is $14.2 billion. In the first half of 2022, the total amount invested in crypto firms has decreased to $14.2 billion from around $32.1 billion the year before.

According to the report, this fall will allegedly last for the rest of 2022. According to KPMG analysts, investments in both liquid cryptocurrencies and blockchain technology had reportedly continued to decline. Additionally, they said that the bottom is still concealed. It also seems that the investment profile has evolved during the recent years.

Prior to 2018, retail customers made up the majority of crypto investors. Since then, however, the investor landscape has transformed, with institutional and corporate investors making up a substantially higher portion of total investment. Due to the connection between the current macroeconomic environment and broader markets, crypto assets have started to trade more like risk assets in recent months.

Over 50% of the value of Bitcoin and Ethereum has been lost on their charts. Currently, the price of bitcoin is at a six-week low of $18,900. Former hedge fund trader and originator of Feeney Factor Patrick Feeney remarked:

“Bitcoin is meant to be a form of digital gold, but due to inflation, it is regrettably acting more like a tech stock.”

According to KPMG, investors may decide to transfer to alternative projects in the second half of the year instead of sticking with their current investments. Blockchain infrastructure projects may be preferred by investors over non-fungible tokens (NFT). The tendency will be toward initiatives that aim to modernise financial technology through the usage of blockchain.

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Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
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