- As per the recent survey, the broader outlook for crypto among Wall Street investors remains bearish as investors also see crypto market regulations as a positive development.
- Investors are confident that Bitcoin and Ether will continue to be the driving force in the crypto space five years from now.
The massive correction in the Bitcoin (BTC) price in Q2 2022 has elevated market pessimism. Currently, the world’s largest cryptocurrency Bitcoin flirts around $20,000 with no clear indication ahead. However, a recent survey shows that a majority of Wall Street investors expect BTC to plummet another 50 percent from here.
As per the MLIV Pulse survey, investors expect the BTC price to touch $10,000 before its resumes the uptrend. Of the 950 respondents, a majority of 60 percent expect the BTC price crash going ahead. On the other hand, the remaining 40 percent expect BTC to jump to $30,000 from here.
Bitcoin and the broader crypto space witnessed a brutal correction in May and June 2022. Besides, the crypto market Several popular crypto lenders are facing a liquidity crisis amid heavy withdrawals. On the other hand, global macro factors suggest the possibility of a recession very soon. The market sentiment has thus turned extremely negative owing to all these factors.
As per the Bitcoin Fear and Greed Index, the crypto market is currently in a state of “extreme fear”.
Bitcoin Fear and Greed Index is 20 ~ Extreme Fear
Current price: $21,383 pic.twitter.com/Ny0BoMV7NJ
— Bitcoin Fear and Greed Index (@BitcoinFear) July 8, 2022
Investors remain divided over Bitcoin and Crypto
As per the MLIV Pulse survey, retail investors remain more skeptical of Bitcoin than institutional players. The report notes that nearly 25 percent of retail investors believe the asset class to be garbage. On the other hand, professional investors remained more open-minded toward cryptocurrencies.
At the same time, investors remain largely polarized and divided. Nearly 28 percent of the total respondents said that cryptocurrencies are the future of finance. While 20 percent believed that they are worthless with no future. Jared Madfes, partner at venture capital firm Tribe Capital said:
It’s very easy to be fearful right now, not only in crypto, but generally in the world. The expectations for a further drop in Bitcoin reflect “people’s inherent fear in the market.
Crypto regulations, investors restore faith in Bitcoin and Ethereum
Several of the respondents also said that the recent crypto market crash will lead to growing regulatory scrutiny and government intervention. However, respondents see it as a positive step as they believe that this would lead to growing retail and institutional adoption. Besides, it will also bring greater confidence among market participants.
Also, a majority of respondents believe that Bitcoin and Ethereum will continue to remain a driving force in the crypto space. Ed Moya, senior market analyst at Oanda Corp., a foreign-exchange broker said: “Bitcoin still is powering large parts of the cryptoverse, while Ethereum is losing its lead”.
The respondents also shared their opinion on the most hyped crypto sector i.e. non-fungible tokens (NFTs). An overwhelming majority consider NFTs to be just art projects or status symbols. Only 9 percent see them as investment opportunities.
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