A recent MLIV Pulse survey has shed light on the sentiments of Wall Street traders regarding the future of the world’s biggest crypto Bitcoin. Considering Bitcoin’s recent struggles, several Wall Street investors expect the leading crypto to rather sink to $10k support than rising soon.
Few Expect a Recovery
MLIV’s new study warns Bitcoin bulls and expects the bearish period to probably last longer than earlier predicted. Over the past few months, crypto prices have continued to fall, the bearish run coinciding with inflation troubles and Russian-Ukraine conflicts.
Bitcoin in particular has seen a significant decline since the start of this year, already far from its 2021 high of $69,000. Despite this fact, Wall Street believes that given time, the dismal conditions will only worsen. Indeed, 60% of the survey respondents maintained that BTC was more likely to dip to 10k than to hit 30k. Meanwhile, the remainder of the 950 polled individuals echoed a reversed opinion. Bitcoin has not traded as low as $10,000 in nearly 2 years.
Throughout the survey, the answers showcased a clear divide among investors regarding Bitcoin and the crypto market in general.
While institutional investors revealed more positive inclinations towards the crypto space retail investors were not as supportive. About a quarter of the respondents tagged digital assets as having no value. However, 28% predicted that they would evolve into a major part of the financial sector.
Investors Losing Faith as More Events Contribute to Crash
The negative opinions hold more weight in light of recent events within the crypto industry. Indeed, Q2 was the worst for BTC in a decade although the token continues to hover around $20k at the moment. As prices continue to drop one can witness a corresponding fall in investor faith.
Other factors that add to the existing sentiment include global challenges such as rising inflation rates. Traders are also looking to the looming energy crisis towards which BTC is a major contributor. Furthermore, as illustrated by the Russia-Ukraine war, conflict can affect crypto prices.
Jared Madfes partner at VC firm, Tribe Capital, shared his thoughts regarding the shifting sentiment. Madfes believes the bearish predictions point towards “people’s inherent fear in the market.”
The Terra crash was a resounding reminder of the fragility of projects within the crypto space. Since the stablecoin ecosystem collapsed, other platforms within the industry have folded. A more recent example of this phenomenon is crypto lender Voyager Digital.
Regulation Could Improve Sentiment
Although there has been an understandable panic regarding crypto regulation, according to the respondents, regulation could, however, be eventually positive.
Wall Street respondents believe retailers and professional investors alike would be more welcoming of digital tokens with proper structures in place. Interestingly, while the investors expect more dips, their views on Bitcoin’s status in the industry differ. The respondents think the token will remain ahead of other assets in the crypto space. In fact, they don’t see any coin displacing Bitcoin or Ethereum anytime soon.
Finally, the polled group also shared their views on non-fungible tokens with the majority tagging them art pieces or prestige purchases. A very small minority, 9% believe digital collectibles could function as valid investments.