According to a new research, more hedge funds are beginning to actively participate in the crypto market in expectation of a rise in bitcoin's price.
According to a PwC survey, one-third of hedge funds are currently investing in the Crypto market. The findings were published in the professional services firm's Fourth Annual Global Crypto Hedge Fund Report 2022.
The research focuses on crypto hedge funds and separates its analysis into two categories: hedge funds that are solely focused on crypto and regular hedge funds that are entering the crypto industry.
For the first group, PwC used data from CoinShares, and for the second, it cooperated with the Alternative Investment Management Association (AIMA).
In terms of hedge funds, the crypto market prediction appears to be positive, as evidenced by a number of data in the research.
Individual crypto hedge funds expanded by an average of 150 percent between 2016 and 2021, from $23.4 million to $58.6 million.
But perhaps more importantly, 67 percent of traditional hedge funds asked said they wanted to invest more money in the crypto market by the end of the year.
The types of assets available appear to be changing as well, with a growing number of hedge funds opting for an active strategy. These organizations are now interested in non-fungible token (NFT) markets, decentralized exchanges, and assets other than BTC and ETH.
These hedge firms have also shown some optimism about the price of bitcoin. Bitcoin is expected to reach a price of $75,000 to $100,000, according to 42% of fund managers. And 35% anticipated that by the end of 2022, the price will be between $50,000 and $75,000.
PwC's analysis is just another indication that the crypto market is gaining traction among both the general public and traditional financial institutions.
This has been the case for well over a year, and sub-sectors like DeFi and NFTs have made significant progress in establishing their appeal. Despite the unfavorable tendencies that have influenced the market this year, crypto has made headway in terms of worldwide acceptance.
Institutions were accumulating bitcoin, according to a study issued last month, as evidenced by big moves on exchanges. The price drop in bitcoin may look to be a wonderful deal, and with objectives set near $100,000, it would be a substantial profit if it happened.
Institutions were believed to be responsible for 99 percent of significant bitcoin transactions, according to another analysis. If these trends continue, bitcoin may get backing from major financial institutions, bolstering its push for worldwide acceptance.