A recent study conducted by MLIV Pulse revealed that 60% of the surveyed Wall Street investors believe bitcoin (BTC) dropping to US$10k is a more possible scenario than the asset rising to US$30k. The poll further estimated that professional investors are more supportive of the cryptocurrency industry than retail investors. In the meantime, 40% of the respondents believe that is eventually going to reclaim the US$30k level. Most of those investors who took part in the survey have expressed at least a certain degree of skepticism regarding cryptocurrencies.
Given how the previous bitcoin bear markets have gone, it is no surprise to see that the majority of investors actually expect the price of the digital asset to fall to US$10k before it makes any major recovery. A historical look shows that bitcoin has consistently lost more than 80% of its all-time high value in every bear market and if it continues to follow this trend, then US$10k remains a likely level to hit.
If survey respondents are right, Bitcoin is on track to record another drop of roughly 43%. On June 18, the flagship cryptocurrency plunged to US$17,622, the lowest level since December 2020. This marked the local bottom of the ongoing correction, but some big names believe that the bellwether cryptocurrency could plunge much lower.
Why do investors find it hard to trust Bitcoin?
Cryptocurrencies are generally treated as an asset class, rather than currencies. Even the government has indicated it wants to treat them as such. But any asset class needs a swarm of investors to have a robust ecosystem. Currently, one of the biggest challenges in front of cryptocurrency entrepreneurs is getting the trust of investors. It is ironic for an industry that is based on blockchain, also known as a trustless system.
Bitcoin is not innocuous. Transactions are processed by “miners” using massive amounts of computing power in return for rewards in the form of Bitcoin. By some estimates, the Bitcoin network consumes as much energy as entire countries like Argentina and Norway, not to mention the mountains of electronic waste from specialized machines used for such mining operations that burn out rapidly.
Bitcoin (BTC) -The first crypto of the industry
Among cryptocurrencies, in 2009 Bitcoin was the first to be made available to the public. The creator of Bitcoin (BTC) goes by the pseudonym ‘Satoshi Nakamoto’ no one has ever been able to establish who the creator of Bitcoin (BTC) is or whether it’s a group of companies. It seems like it could forever remain unknown. Bitcoin (BTC) is decentralized since there is no central figurehead or institution to lead. Bitcoin (BTC) has been accepted as legal tender by El Salvador in 2021. Even institutional investors are interested in investing due to its successful performance over time creating many multi-millionaires.
The Lowest Point
Since its inception, BTC’s price has historically found a bottom around previous all-time highs. McGlone claims there are conditions for US$20,000 to operate as this pivot support level in 2022 on the back of a decline in “risk measures” against the traditional market. Bitcoin at US$20,000 may be looked back upon as US$2 in 2011, US$200 in 2015, and US$3,000 in 2018. Bitcoin and Ether risk measures are falling vs. equities and the potential for US regulation (Lummis-Gillibrand crypto plan) shows mainstream maturation.
On lower timeframes, Bitcoin has been able to stay above US$20,000 despite the decline in traditional markets and the strength of the U.S. dollar. The U.S. currency is approaching a 20-year-old high as investors continue to de-risk amid current macroeconomic conditions. Data from Material Indicators (MI) records around US$20 million in bid orders for BTC’s price from US$20,000 to US$19,000. These levels should operate as support in case of further downside as BTC whales continue to accumulate.