Bitcoin’s recent downturn, particularly following the introduction of spot exchange-traded funds (ETFs) in the U.S., has raised concerns among retail investors about the cryptocurrency’s future, according to a survey conducted by Deutsche Bank (DB).
The survey, encompassing 2,000 consumers in the U.S., U.K., and Europe after the approval of spot bitcoin ETFs, unveiled a sense of skepticism among respondents.
Over one-third of those surveyed predicted that bitcoin prices would plummet below $20,000 by the end of the year. Notably, a significant portion expressed a lack of confidence in the cryptocurrency’s longevity, with 42% anticipating its disappearance, while only 39% believed it would endure in the coming years.
Despite the optimism surrounding the approval of spot bitcoin ETFs as a potential game-changer, the survey indicated a prevailing sense of caution. More than half of the participants voiced concerns about the possibility of a major cryptocurrency experiencing a collapse within the next two years, suggesting that the crypto winter might not be over.
The negative sentiment is attributed to past events, including the 2022 demise of crypto exchange FTX and the collapse of terraUSD (UST). The ongoing regulatory crackdown in the U.S. has further added to the apprehension.
Additionally, the survey highlighted a significant lack of understanding about cryptocurrencies, with two-thirds of consumers admitting to having little or no knowledge of digital assets. This lack of comprehension may contribute to the prevailing uncertainty and skepticism among retail investors.
As Bitcoin’s price trajectory remains uncertain, the survey reflects the diverse perceptions and concerns within the retail investor community regarding the future of the world’s largest cryptocurrency.
This information is not legal advice. Do your own research before making any decisions. Only invest what you can afford to lose and seek independent financial advice if needed. Understand the risks involved before purchasing any cryptoassets.