Bitcoin is more likely to plummet to $10,000 than soar again above $30,000 following the recent downturn in the market, according to the results of a survey published Monday.
The world’s leading cryptocurrency by market cap was trading at $20,371 on Monday, down about 2.3%. The token hasn’t been at $10,000 since September 2020.
But 60% of investors say they expect to see the digital coin fall to that level in the days ahead, according to the Bloomberg’s MLIV Pulse survey conducted from July 5 through July 8.
Conversely, just 40% are bullish on bitcoin and expect it to hit $30,000 again, according to the survey based on responses from 950 investors.
“It’s very easy to be fearful right now, not only in crypto, but generally in the world,” Jared Madfes, a partner at venture firm Tribe Capital, told the outlet.
Cryptocurrencies have plummeted in recent months as investors shift their money to safe havens in response to the Federal Reserve’s interest rate hikes and mounting geopolitical tensions that have rattled markets. Bitcoin is down about 70% since hitting its all-time high of $69,000 last November.
Retail and institutional investors alike remain deeply polarized regarding the long-term value of cryptocurrencies. Some 28% of investors had strong confidence that cryptocurrencies were a transformational development in the world of finance, while 20% said the tokens are essentially worthless, according to Bloomberg.
Nearly a quarter of retail investors (24%) said cryptocurrencies were all garbage, while 27% said they were open-minded but skeptical and 22% said they were skeptical but were invested in the sector anyway.
As The Post reported in May, a recent crash in crypto prices has triggered panic among average investors who poured their savings into bitcoin – with some fearful that the downturn would cost them their homes.
The onset of “crypto winter” has also triggered a liquidity crisis among prominent trading and lending platforms in the sector, some of which have already imploded or, like BlockFi, were forced to seek outside funding to stay afloat.
The downturn has forced a wave of layoffs among major platforms, including CoinBase and the Winklevoss twins’ Gemini.
“We appear to be entering a recession after a 10+ year economic boom,” Coinbase CEO Brian Armstrong said in a note to employees last month. “A recession could lead to another crypto winter, and could last for an extended period.”