According to a recent study of retail investors, bitcoin is more likely to reach $10,000 than $30,000 in the near future.
60 percent of the 950 retail investors who participated in Bloomberg’s MLIV Pulse survey believe bitcoin would decline to $10,000.
40% are certain that the most valuable cryptocurrency will recover and reach $30,000 in the near future.
Those who participated in the study between July 5 and July 8 were questioned: “Which price will bitcoin first trade at? $10k or $30k.”
Nearly 28% of those who participated in the poll strongly believed that cryptocurrencies are the way of the future of money, while 20% said they are useless.
This gauge of retail investor sentiment is crucial for the digital asset, which depends on a finite supply and the trust and confidence of investors for its value.
Compared to an all-time high of almost $68,000 in November of last year, the price of bitcoin hasn’t been above $10,000 since September of this year.
Today, Bitcoin (BTC-USD) dropped below the psychological $20,000 mark to $19,599, losing 3.8 percent over the previous 24 hours.
The second-largest cryptocurrency by market value, Ethereum (ETH-USD), dropped over 7% in a single day to reach $1,070.
Despite the fact that the price of bitcoin dropped by about 4% on Tuesday, falling below the psychologically significant $20k mark, there has not been the same amount of fear as there was in early June when the price of bitcoin appeared to be falling out of control.
Financial institutions are starting to accept cryptocurrencies more often, and the fifth-largest Swiss Bank is about to make bitcoin trading available to nearly 2 million of its clients.
According to a SwissInfo, the largest retail bank in Switzerland, PostFinance, will start allowing its 2.69 million customers to purchase, trade, and keep cryptocurrencies in 2024.
The financial division of the Swiss Post Office has decided to accept bitcoin, joining other established organizations, including Julius Bär, LGT Bank, Goldman Sachs, JP Morgan, and Fidelity.
In an interview with Coindesk, Mati Greenspan, the founder of the cryptocurrency and foreign exchange analysis company Quantum Economics, commented on the most recent price movement “Although I’ve seen estimates as low as $8,000 per bitcoin, we may have already reached the bottom. The situation only looks better when we acknowledge that the worst-case scenario is probably not very plausible.”
CrossTower CEO Kapil Rathi remarked in an interview with Coindesk TV that the crypto market should be stronger and healthier when we come out on the other side because of the cleansing that is now taking place.
However, in his speech on Tuesday at the British High Commission in Singapore, Sir Jon Cunliffe issued a warning for investors who seek to enter the cryptocurrency market now that prices appear to have reached a floor.
The Bank of England’s deputy governor for financial stability said: “Financial assets that lack intrinsic value, that is, assets backed by the real economy and without a way to generate income, are only worth what the next buyer is willing to pay. They are prone to collapse, very sentimental, and volatile by nature. As a form of “digital gold,” crypto-assets like Bitcoin, according to its proponents, can act as a hedge against inflation and economic volatility due to their technological architecture. They actually act like a highly speculative, dangerous asset, though.”
Cunliffe continued by highlighting the overly leveraged positions that have exacerbated losses in the recent downturn, sparked a “fire sale of digital assets,” and issued a warning about them.
Regarding the danger that leverage entails, he stated: “We have seen a number of cryptocurrency funds knocked down by these impacts; one of the biggest has been here in Singapore with Three Arrows Capital declaring for bankruptcy last week.”
The cryptocurrency industry has experienced a rapid spread of fall in the value of crypto assets, with some crypto lending platforms halting withdrawals and others declaring bankruptcy.
Businesses have experienced most of the harm with exposure to the defunct cryptocurrency hedge fund Three Arrows Capital (3AC).
As the company had exposure with 3AC of around $650 million, the 100,000+ creditors of the defunct crypto-brokerage Voyager Digital (VYGVF) are now only anticipated to get a portion of what they are due.
The founders of the cryptocurrency hedge fund Three Arrows Capital, Credit Suisse traders Zhu Su and Kyle Davies, have gone missing, and creditors have sought a US bankruptcy court in Manhattan to order them to participate in the liquidation proceedings.
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