Bitcoin is likely to drop to $10,000, almost half its current value, in expectations that cut the scales for any new rally to $30,000, some see, according to 60% of 950 investors who responded to the latest MLIV survey. Pulse.
In contrast, 40% of them saw it as going the other way, but Bitcoin fell 2.4% to $20,474 Monday morning in New York.
The unbalanced forecast underscores how “bearish” investors are, at a time when the . sector has been shaken Cryptocurrencies Troubled lenders, collapsing currencies, and an end to the pandemic-era easy money policies that fueled the frenzy of speculation in financial markets.
About $2 trillion has disappeared from the cryptocurrency market value since late last year, according to data compiled by CoinGecko.
Individual investors were more apprehensive regarding cryptocurrencies than their institutional peers, with nearly a quarter declaring that the asset class might turn into “trash.” Professional investors have been more open to digital assets.
But overall, the sector remains polarized, with around 28% of survey respondents expressing strong confidence that cryptocurrencies are the future of finance, while 20% said they are “worthless.”
Bitcoin has already lost more than two-thirds of its value since it reached nearly $69,000 last November, and has not traded as low as $10,000 since September 2020.
“It’s very easy to be scared right now, not just in the crypto sector,” said Jared Madvies, partner at venture capital firm Tribe Capital.
He added that expectations of a further decline in Bitcoin reflects the “inherent fear of people in the market,” according to Bloomberg.
The collapse of the cryptocurrency is likely to put more pressure on governments to tighten regulations in the sector. The majority of respondents view this oversight as positive, as it can improve trust and lead to broader acceptance among institutions and individual investors.
It is also likely that the government intervention will be welcomed by investors who have been caught on the fire of the collapse of the so-called stablecoin TerraUSD, and brokers such as Celsius Network and Voyager Digital.
Central banks are also considering developing their own digital currencies for use in payments. However, neither the recent price drops – nor the potential challenge from central banks – is expected to significantly upset the sector by dumping more popular currencies such as Bitcoin and Ether.
The majority of respondents expect one of these two currencies to remain a driving force within five years, even with a large group seeing that central bank digital currencies will play a major role.
