Bitcoin’s price continued to fluctuate around $20,000 on Monday. Since mid-June, Bitcoin has been showing signs of a recovery amid increased interest from institutional investors. The price of bitcoin plummeted to $18,000 in mid-June, its lowest price since December 2020
A survey of 950 investors conducted by MLIV Pulse revealed that 60% of respondents believe that the market will decline further, while 40% feel otherwise.
The bearish forecast illustrates how pessimistic investors have become. The cryptocurrency industry has been rattled by the collapse of several lending platforms, unstable currencies, and an end to the loose monetary policies that fueled a speculative frenzy in financial markets.
According to data compiled by CoinGecko, the total market value of cryptocurrencies has fallen by more than $2 trillion since late last year. Retail investors were more cautious about cryptocurrencies than their institutional counterparts, with a quarter of respondents declaring the asset class to be meritless. Professional investors were more receptive to investments in digital assets.
But cryptocurrency remains a polarising investment, with 28% of respondents expressing strong confidence that it will become the future of finance. The main reason behind this strong belief is that it does not require players to reveal their bank details while conducting transactions on non gamstop casino Paypal sites, especially as crypto gambling continues to be on the rise, as well as when making other typical payment transactions for other popular everyday activities.
Since reaching a high of nearly $69,000 in November, Bitcoin has lost more than two-thirds of its value and has not traded below $18,000 since September 2020. According to Jared Madfes, partner at Tribe Capital, it is easy for people to be fearful of cryptocurrency in the current market environment. He said the expectations for a further drop in Bitcoin reflect market participants’ general fear of uncertainty.
As the crypto market continues to decline, governments will likely be pressured to increase regulations on the industry. Most respondents view such supervision as positive, as it could improve confidence among institutional and retail investors.
Central banks are exploring the development of their own digital currencies for use in digital payments. But neither the recent drop in prices nor the challenge from central banks is expected to upend the cryptocurrency industry significantly. A majority of respondents expect that one of those two factors will remain a driving force in five years, and a significant share sees central bank digital currencies taking on a key role.
Non-fungible tokens (NFTs) became famous for attracting valuations in the millions of dollars during the height of the crypto boom when they were used to represent pieces of art. While the overwhelming majority of those surveyed do not consider NFTs to be suitable long-term investments, only 9% view them as such.
Most respondents do not expect the next big run-up to being related to cryptocurrencies. While non-fungible tokens (NFTs) and other developments on the blockchain are seen as having low chances of setting off another speculative frenzy, the next generation of the internet called Web 3.0 has been predicted to do so.
At the moment, cryptocurrencies remain a volatile asset driven by high-risk/high-reward investors. However, as interest from individual investors continues to decline, market activity will likely normalise in the coming months and years.