Crypto crumbles as anniversary of flash crash nears

Crypto investors have plenty of other reasons to be fearful. Among them are continued surges in the price of oil and interest rates, which potentially could siphon money away from risk assets like bitcoin. There’s also regulatory uncertainty after the failure of the Clarity Act and the upcoming midterm elections, which could change the balance of power in D.C.

Outlook remains positive for some

Despite bitcoin’s latest sell-off and potential pain points, institutional investors appear to be growing more confident in the broad long-term outlook for digital assets. In a State Street survey of 300 asset managers, asset owners and wealth managers, published Tuesday, about 51% of respondents expect digital assets to become mainstream within the next five years, up from just 11% in 2024.

The survey also found that institutions hold an average of 11% of their portfolio in digital assets and expect that share to rise over the next three years, pointing to growing adoption even as prices fail to break out on the upside.