A recent poll of crypto investors revealed that most believe there is a greater chance of Bitcoin losing half its value and falling below $10,000 than that it recovering momentum and climbing above $30,000 in value. Bitcoin has been trading at slightly over $20,000 for the past month or so. According to a recent Bloomberg survey of investors, 60% believe that the leading cryptocurrency will reach $10,000 before reaching the $30,000 level that the remaining 40% predict it will reach.
The survey questioned 950 people about their opinions on cryptocurrencies. Overall, retail investors expressed a greater degree of skepticism than professional investors. Approximately 25% of retail investors viewed cryptocurrencies as “garbage,” while another 27% described themselves as dubious but open-minded. Only 4% of retail investors identified themselves as “bitcoin maximalists.” However, 23% believe cryptocurrencies to be “the future.”
Bitcoin had a successful year in 2021, reaching an all-time high of $69,000 last November. However, it has since slowly declined, plummeting to $40,000 by May and then further down to the current $20,000 level, which is its lowest level since the end of 2020. Other notable cryptocurrencies are collapsing with Bitcoin. Since the beginning of the year, Ripple has lost 60% of its value, Ethereum has lost 70% of its value, and Cardano has fallen by more than 67%. Since the end of last year, the markets for cryptocurrencies have lost a total of roughly $2 trillion, according to CoinGecko.
Jared Madfes of Tribe Capital, stated that the poll results are reflective of “people’s inherent fear in the market.” adding that “It’s very easy to be fearful right now, not only in crypto, but generally in the world.” In May, cryptocurrency entrepreneur Travis Bott told the Washington Examiner, “There is pandemonium across all markets. Inflation is rising, interest rates are rising, and the actual effects at the consumer level are even much more dramatic than the Fed or government want to acknowledge.”
Investors are departing the cryptocurrency market in favor of less risky assets as inflation continues to rise to levels not seen in decades and the Federal Reserve raises interest rates. The collapse of the regular stock market has coincided with the decline of the cryptocurrency market as investors fear that the Fed’s tightening policies would trigger a recession.