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Most financial advisors believe the price of bitcoin will drop this year but are nonetheless bullish on the cryptocurrency in the long term, with many allocating client accounts to it, according to a recent report.

Sixty-three percent of advisors believe the price of Bitcoin will fall in 2023, but 60% also believe it will be higher in five years, according to the survey from crypto index manager Bitwise Asset Management and the trading platform. VettaFi exchange-traded funds.

Additionally, 15% of advisors said they were allocating to crypto, up from 16% who said they were in last year’s survey, but well ahead of the 9% who said they were in 2021. and 6% in 2020.

Client interest is much higher: 90% of advisors say their clients ask about crypto, according to the survey.

The majority of advisors indicated that their clients invest in crypto outside of their advisory relationship, according to the survey. Only 29% of advisors said they could access crypto in client accounts, while the rest said their company prevented them from doing so.

2023 is the year to bring these investments in-house, said Matt Hougan, Chief Investment Officer of Bitwise Asset Management, in a statement.

A recent survey by Ignites Research, however, found that 71% of advisors either don’t know enough about crypto or wouldn’t advise clients to invest their money in it, while 60% said that even if the Securities and Exchange Commission was starting to regulate it, they wouldn’t. change the way they allocate those assets.

The crypto space has been through some turmoil over the past year, amid steep price declines and fallout from the November implosion of crypto exchange FTX.

The collapse of FTX has rippled through the crypto sphere, leading some analysts to predict that Bitcoin could fall to $5,000. It is currently trading around $23,000, down from a high of nearly $70,000 reached in November 2021. Crypto lenders and other service providers have also taken steps to stabilize their businesses.

Late last year, cryptocurrency exchanges Kraken and Bybit each cut staff by 30% while crypto exchange Swyftx laid off 35% of its employees.

Earlier this month, Digital Currency Groups cryptocurrency lender Genesis laid off 30% of its staff and last week filed for Chapter 11 bankruptcy.

Coinbase and Crypto.com also recently announced layoffs, according to The Wall Street Journal.

And this week, crypto exchange DGC Luno laid off around 35% of its global staff, writes the Journal.

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