Business sentiment towards cryptocurrencies as a “theme” declined by 8% in Q2 2022 verses Q1 2022, according to the Company Filings Analytics Database by GlobalData.
The data and analytics company notes that crypto’s sentiments “have been on the downtrend since Q4 2021.”
As part of its research, GlobalData has reportedly “analyzed the company filings of over 34,000 publicly listed companies worldwide, and analyzed cryptocurrencies as a theme in earnings call transcripts.” The database also “includes both quarterly and annual reports, IPO filings, event presentations, and ESG filings.”
Rinaldo Pereira, Business Fundamentals Analyst at GlobalData, comments:
“Crypto assets have been hit of late, with prices having lost considerable value due to the high volatility of the market. Corporate sentiment has reached the lowest point in 12 months. Investors seem concerned about the risks due to inflation and rising interest rates, and corporates are likely to follow suit.”
GlobalData’s research also “involved searching filings that mentioned cryptocurrency for further keywords to discover if any associations could be made between these words and the negative sentiment.”
Pereira continued:
“The decline in crypto-related sentiment was largely driven by negativity around ‘Price and ‘Fluctuations’, as firms that have already invested heavily in crypto are naturally concerned about their profit margins. Corporates were typically neutral in their discussions around crypto investment, however, with many mentioning a rapidly evolving crypto environment, while others mentioned the impact that crypto’s high volatility had on performance.”
However, GlobalData notes that “the drop in crypto sentiment was not as bad as it could have been due a general optimism around ‘Digital Assets’ and ‘Investment’.”
Research by GlobalData also “identified a drop of 5% in cryptocurrency-related job postings between January 2022 and May 2022.” The dip highlights “a likely slowdown in new hiring amid macroeconomic pressures.”
Sherla Sriprada, Business Fundamentals Analyst at GlobalData, adds:
“Crypto markets have recently been on a downtrend amid inflation issues with investors taking a step back from the market. This is likely affecting jobs as well, as companies may be forced to lay off employees and reduce their workforce.”
As noted in the update, 4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, “make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform.”
GlobalData’s mission is “to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.”