The world’s largest cryptocurrency, Bitcoin [BTC], has slumped following the launch of spot exchange-traded funds (ETFs) within the U.S. earlier within the month, and the digital asset may drop even additional in line with a survey of retail traders by German lender Deutsche Bank (DB).
The financial institution surveyed 2,000 customers within the U.S., U.Ok., and Europe following the approval of spot bitcoin ETFs, the financial institution stated in a report on Tuesday.
Over one-third of respondents stated that bitcoin costs will drop under $20,000 by 12 months finish, and extra individuals count on the cryptocurrency to vanish relatively than keep. The survey confirmed that 39% of individuals say they consider that bitcoin will live on within the coming years, whereas 42% “anticipate its disappearance.”
The approval of spot bitcoin ETFs within the U.S. was seen as a sport changer by many within the trade, with mainstream cash now anticipated to flood into the sector. Investors who couldn’t commerce digital property at the moment are in a position to make use of low-cost and liquid ETFs to achieve publicity with out having to personal the underlying cryptocurrency itself.
The crypto winter might not be over, as “greater than half of the respondents expressed considerations a couple of main cryptocurrency experiencing a collapse throughout the subsequent two years,” the financial institution stated.
Deutsche notes that this poor sentiment is probably going as a consequence of previous occasions, such because the demise of crypto exchange FTX in 2022 and the collapse of terraUSD (UST). The continuing regulatory crackdown within the U.S. can be seen as an overhang.
The financial institution’s survey outcomes additionally highlighted a lack of information of cryptocurrencies, with two-thirds of customers having little or no understanding of digital property, the report added.
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