Wall Street Expects Bitcoin to Fall to $10K - Survey

It follows from the latest survey Bloomberg MLIV Pulse. According to the results, the market has not bottomed yet. According to 60 % of the 950 Wall Street investors who responded, the token is more likely to fall to $10,000, roughly halving its value, than to bounce back to $30,000. Forty percent see it differently and believe that Bitcoin will go to $30,000 without a major drop. The survey, which took into account the prediction of investors, showed a strong skepticism among them about the digital asset.

The recent financial crisis and interest rate hikes by the Federal Reserve to control rising inflation in the US have been the main reason why investors have triggered "bearish sentiment" in the market. It has also been reported that the central bank is on the verge of announcing another rate hike of 75 basis points and this is expected to have a negative impact on risk assets such as Bitcoin.

Confidence levels also remained low as the cryptocurrency sector was rocked by news of troubled crypto companies counting on only moving north. Retail investors are more concerned about cryptocurrencies than their institutional counterparts, with nearly a quarter labeling the asset class junk. Professional investors were more open to digital assets.

Overall, however, the sector remains polarizing: while some 28 %s of the total respondents expressed strong confidence that cryptocurrencies are the future of finance, 20 %s said they are worthless. 

Scott Minerd, global chief investment officer at Guggenheim Partners, said after Bitcoin fell past the $30,000 support level that there is much more room for downside. According to him, $8,000 is the final bottom.

Mike Novogratz, CEO of Galaxy Digital who has always been very bullish on Bitcoin, also admitted that the asset could see a huge drop in the short term.

There was broader agreement about one segment of the market: non-fungible tokens. The vast majority of respondents consider them only artistic projects or status symbols, only 9 % consider them an investment opportunity. Furthermore, those looking for the next bubble may do well to look elsewhere, as speculative mania rarely hits the same asset class twice. Ultimately, most respondents expect that NFTs have low chances of triggering another hype.

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.