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The macroeconomic trend will be a major test for Bitcoin, notes KPMG


in his last report, KPMG notes that investments in the cryptocurrency and blockchain sector have decreased in 2022 compared to last year. Despite this, keep in mind that these numbers are still higher than all other previous years.

One of the main changes observed by the company is related to investors in Bitcoin Y other cryptocurrencies. According to the accounting industry giant, the market was dominated by retail investors until 2018. Since then, institutional and corporate investors have become a crucial part of this market.

As a result, cryptocurrencies that were previously uncorrelated to traditional assets have undergone a major change in recent years. At the moment, some investors even consider Bitcoin an emotional thermometer for the stock market.

“The current macroeconomic trend is likely to be a major test for cryptocurrencies, and especially Bitcoin, in terms of correlation with other assets.

Despite everything, the cryptocurrency industry is maturing

Remembering events like the collapse of the Earth (MOON), rising inflation and the conflict between Russia and Ukraine, KPMG notes that investments in the crypto and blockchain sector are doing well. Even in decline compared to 2021, these numbers are higher than in previous years.

«This highlights the growing maturity of the space and the breadth of technologies and solutions that attract investment.»

Global investments (VC, PE and M&A) in the blockchain and cryptocurrency sector. Source: KPMG.

Next, the Big Four comment on the adoption of Bitcoin by El Salvador and the Central African Republic, noting that more nations may follow this model later this year. However, he also cites the Chinese ban and the arrival of stricter regulations in Europe through MiCA.

What to expect for the rest of the year?

Finally, KPMG makes some considerations about what investors should expect for the second half of 2022. To begin with, it points out that companies in the sector will be tested to the extreme. Therefore, the best prepared will be able to survive this winter, while others will go bankrupt.

“Of course, some cryptocurrencies will disappear, particularly those that lack clear and strong value propositions.. This can be quite healthy from an ecosystem perspective, because it will clean up some of the mess created in the euphoria of a bull market. The best companies will be the ones that survive”, writes Alexandre Stachtchenko of KPMG.

Finally, he also cites the growing interest in stablecoins by corporations. As a reason, he cites the advantages they can offer, such as cost reduction, liquidity, and ease of use. In addition, he estimates that security solutions, such as transaction tracking, will be in greater demand.

Therefore, the message conveyed by KPMG is simple. The cryptocurrency crisis is going to bankrupt many companies, but the sector will appreciate it in the future, when there are only good and prepared projects left in the industry.

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