After briefly falling below $18,000 in late June, Bitcoin has traded in a tight range around $20,000.
But investors seem to expect the crypto crash to get worse, according to a recent Bloomberg report. In a survey of 950 investors by MLIV Pulse earlier this month, 60% of respondents thought BTC was more likely to fall to $10,000, or half its current price.
Only 40% think BTC will bounce back to $30,000.
Nearly a quarter of retail investors think cryptocurrencies are junk The above lopsided forecast results, coupled with the US Fed’s sharp rate hike, Three Arrows Capital, Voyager…
And other large institutions, but also again highlighted the extent of investor pessimism.
Jared Madfes, a partner at venture Capital firm Tribe Capital, said: “It’s easy to get scared now, not just in crypto, but worldwide…
Expectations of further declines in bitcoin reflect people’s inherent fear of the market.
As for the future of cryptocurrencies, the survey data showed that 24% of retail investors and 18% of professional investors held the most extreme view that the crypto asset class was junk.
It’s worth noting that the recent cryptocurrency crash and institutional thunderstorms are likely to put further pressure on governments determined to tighten regulation of the industry;
But most respondents largely viewed the regulation as positive, boosting their confidence and promoting wider acceptance of cryptocurrencies by both institutional and retail investors.
The final report also noted that a majority of respondents expect either Bitcoin or Ethereum to continue to be a driving force over the next five years, and even a large percentage see central bank digital currencies (CBDCS) playing a key role.
Ed Moya, senior market analyst at forex broker Oanda, commented that Bitcoin is still powering most cryptocurrencies, while Ethereum is losing its lead.