Bitcoin is more likely to fall to $10,000 than rally above $30,000 following the recent market downturn, according to survey results released on Monday.
The world’s largest cryptocurrency by market capitalization was trading at $20,371 on Monday, down about 2.3%. The token is no longer at $10,000 since September 2020.
But 60% of investors say they expect to see the digital coin fall to that level in the coming days, according to Bloomberg’s MLIV Pulse survey conducted July 5-8.
Conversely, only 40% are bullish on bitcoin and expect it to hit $30,000 again, according to the survey based on responses from 950 investors.
“It’s very easy to get scared right now, not just in crypto, but in the world in general,” Jared Madfes, a partner at venture capital firm Tribe Capital, told the outlet.
Cryptocurrencies have fallen in recent months as investors shifted their money to safe havens in response to Federal Reserve interest rate hikes and growing geopolitical tensions that rocked markets. Bitcoin is down about 70% since hitting its all-time high of $69,000 last November.
Retail and institutional investors remain deeply polarized about the long-term value of cryptocurrencies. According to Bloomberg, some 28% of investors believed cryptocurrencies were a transformational development in the world of finance, while 20% said tokens were essentially worthless.
Nearly a quarter of retail investors (24%) said cryptocurrencies were all rubbish, while 27% said they were open-minded but skeptical and 22% said they were skeptical but that they had still invested in the sector.
As The Post reported in May, a recent crash in crypto prices sparked panic among average investors who poured their life savings into bitcoin — with some fearing the downturn could cost them their homes.
The onset of “crypto winter” has also sparked a liquidity crunch among the industry’s major trading and lending platforms, some of which have already imploded or, like BlockFi, have been forced to seek outside funding to stay afloat. .
The slowdown has forced a wave of layoffs among major platforms, including Winklevoss twins’ CoinBase and Gemini.
“We appear to be heading into a recession after an economic boom lasting more than 10 years,” Coinbase CEO Brian Armstrong said in a memo to employees last month. “A recession could lead to another crypto winter and could last for an extended period.”
New York Post