Over the past week, the world’s largest cryptocurrency bitcoin (BTC) managed to stay afloat above $20,500, but now BTC is giving mixed signals about future price movement.
Interestingly, most Wall Street investors believe the price of bitcoin could fall another 50% from its current price all the way down to $10,000. According to the MLIV Pulse survey, 60% of the 950 investors surveyed believe that BTC could fetch $10,000; the remaining 40% believe that bitcoin, by contrast, will add 50% and rise to $30,000.
Over the past two months, the crypto industry has faced serious problems related to troubled lenders, the collapse of crypto projects and currencies, and more. Bearish sentiment in global macroeconomic indicators has increased sell-side pressure on the crypto market, among others.
These factors have worsened investor sentiment. True, during the MLIV Pulse survey, about 28% of the total number of respondents showed strong confidence in the safety of crypto-assets. Another 20% believe cryptocurrencies are worthless.
The collapse of Terra ecosystem, cryptocurrency lenders Celsius Networks, Voyager Digital and many others require more regulatory attention to the crypto space. The majority of respondents in the survey cited government oversight as a positive aspect for the crypto sector.
With regulation of this market, most respondents believe BTC and ETH will remain a driving force in the crypto sector.
Ed Moya, a senior market analyst at Oanda Corp, noted that “bitcoin is still powering much of the cryptocurrency universe, while Ethereum is losing its lead.”