04 Oct Fundstrat research: Institutions more bullish on crypto vs small investors
Fundstrat Global Advisors is out with a report featuring new research comparing institutional versus small investor opinions on cryptocurrency markets as well as its monthly analysis and market predictions.
Fundstrat interviewed 25 institutions and surveyed 9,500 respondents on Twitter to compare the opinions of institutions versus individuals about cryptocurrency.
The results make interesting reading.
Institutions positive, crypto-Twitter not so much
Institutions were decidedly more bullish on cryptocurrency than those surveyed on Twitter. Highlights included:
- 54% of institutions believed bitcoin had bottomed during 2018 while 44% of Twitter respondents agreed
- 13% of institutions and 24% of those on Twitter thought the “bottom” will happen by end of 2018
- 57% of institutions saw bitcoin at more than $15,000 by end of 2019 compared to 40% on Twitter
- 59% of institutions chose bitcoin as their favorite of 15 tokens while 46% of those on Twitter picked Ripple (XRP).
XRP a “contrarian buy”?
Ripple was a polarizing token with 46% on Twitter choosing XRP as their favorite although 31% said it made the “least sense.” 28% of institutions agreed XRP made the “least sense” and no institutions picked it as their favorite digital token.
“Clearly the crowd does not like XRP, for multiple known factors (the centralization of XRP, tenuous ties to Ripple, etc) but given the polarization and the fact that 1/3 of institutions consider it “least understood” – it makes us believe this may be a contrarian buy signal,” Fundstrat reported.
Biggest influences on cryptocurrency
Both institutions and those surveyed on Twitter agreed the most important macro factors affecting cryptocurrency were central banks (35%) and emerging markets (28%) followed by geopolitical tensions (19%) and the US dollar (18%).
Institutions saw geopolitical tensions as a bigger influence by 5.1% than Twitter respondents.
Impact of recession on cryptocurrency
Overall, 72% of institutions surveyed said a recession would push cryptocurrency prices higher while 59% on Twitter said a recession would increase cryptocurrency prices.
Best & worst performing cryptocurrencies
While only 25 institutions were pOlled, opinions on best and worst performing cryptocurrencies varied considerably from Twitter respondents.
Institutions predicted the four best-performing tokens would be bitcoin (59%), EOS (18%), Ethereum (8%) and Neo (5%) with worst performers Tether (23%), TRON (18%), EOS (12%) and Ethereum (9%).
Twitter respondents said best-performing tokens would be Ripple (46%), bitcoin (31%), Ethereum (15%) and EOS (8%).
Summing up the market predictions, Fundstrat said:
“The majority of institutions think BTC has bottomed while the plurality of Twitter sees BTC bottoming in 2019. And Institutions see significantly greater upside to BTC prices by YE19. Given that institutional inflows likely increase strongly in 2019 (Bakkt, etc), we believe BTC will be the primary interest for institutional investors – hence, should meaningfully outperform.”
The contrast of views from institutions with those surveyed on Twitter was fascinating to compare. You can learn more about the Fundstrat Global Advisors newsletter here.