Less scepticism around Bitcoin, but will the euphoria last?
Bitcoin reached a high point on Monday, its highest in three weeks. Back in March, it hit an all-time high of $73,803.25, bouncing back from a big drop in 2022.
In Short
- Survey shows less scepticism towards Bitcoin
- Majority still expect Bitcoin price drop by end of 2024
- 52% respondents see cryptocurrencies as important future asset
A recently published Deutsche Bank survey showed that consumers are becoming slightly less sceptical about Bitcoin after the cryptocurrency registered a strong rebound this year.
However, most of the people surveyed still expect the most popular cryptocurrency’s price to drop sharply by the end of 2024.
Details of the survey, reported by news agency Reuters, highlighted that although people have poured billions of dollars into Bitcoin in hopes of higher returns, top regulators have said it has no inherent value and presents risks.
The Deutsche Bank survey included more than 3,600 consumers, with 52% of respondents saying cryptocurrencies will be an "important asset class and method of payment transactions" in future.
In contrast, less than 40% said that when surveyed in September 2023.
A third of US respondents expect Bitcoin’s value to drop below $20,000 by the end of 2024. However, this group is getting slightly smaller, according to the survey, In was 35% in February and 36% in January.
The number of people who think cryptocurrencies are “just a fad that will eventually fade” dropped to less than 1%. Even then, only 10% of the respondents expect Bitcoin price to be above $75,000 by the end of the year.
Will the Bitcoin rally continue?
Bitcoin reached a high point on Monday, its highest in three weeks. Back in March, it hit an all-time high of $73,803.25, bouncing back from a big drop in 2022.
Analysts quoted by news agency Reuters believe this recent rise is because people are excited about new ways to invest in Bitcoin, like spot bitcoin ETFs. They also think that cuts in interest rates could help.
Some analysts think that Bitcoin's price going above $70,000 again shows that investors aren't too worried about the risks.
Deutsche Bank analysts think that Bitcoin's price will stay high because of the upcoming "Bitcoin halving", where the rate at which new Bitcoins are created is cut in half. They also think that regulations, cuts in interest rates by central banks, and the possibility of the SEC approving spot Ethereum ETFs will help keep the price up.