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Cryptocurrencies Due For a Correction in 2022, Experts Say

But don’t look for bitcoin or other digital assets to be less volatile anytime soon.

The crypto market has been up and down recently, as noted by the recent volatility of bitcoin ( (BTSC) ) over the past few days.

That push and pull doesn’t seem likely to abate anytime soon.

A survey from Natixis Investment Managers of three-quarters of major financial institutions found that experts believe digital assets such as cryptocurrencies are due for a major “major correction” next year, according to Bloomberg.

Nearly three-quarters of the institutions polled also said that cryptocurrencies are not an appropriate investment for most retail investors.

But crypto does have its defenders. Around 26% of U.S. investors have purchased crypto holdings over the past two years, and the Natixis Investment Managers survey found that 28% of all institutions surveyed currently invest in cryptocurrencies.

A third of those investors (or 8% of all the investors surveyed) plan to buy more next year. 

Because cryptocurrencies like bitcoin have a relatively limited supply and no central bank regulating them, they are prone to wild swings of big gains and big losses in a short time period. 

That can make them attractive to some investors looking to making money on volatility when the market is leaning towards stable, safe investments such as bonds. 

If the market does start to approach something approaching normal next year, it wouldn’t be surprising if mainstream investors start to once again favor more traditional investments. 

But if they engage in a mass sell-off in 2022, that just means there’s more bitcoins for the ever-eager Reddit crowd. 

At last check-in, the price of bitcoin was up 0.43%