Wall Street Expects Bitcoin to Plummet to $10,000: Survey

July 13, 2022, 10:05 AM AEST - 1 month ago

A recent study by MLIV Pulse has revealed that 60 percent of Wall Street investors surveyed believe that bitcoin is more likely to drop to US$10,000 than rise to US$30,000.

Investor Sentiment Remains Negative

According to 950 institutional investors, 60 percent believe that bitcoin’s value will more likely be cut in half than rise by 50 percent to reach US$30,000. This notably bearish bias is likely the product of both macro and crypto-specific factors.

MLIV Pulse Survey. Source: Bloomberg

Aside from troubles experienced by crypto lenders such as BlockFi and Celsius, and in addition to U$2 trillion being shed from the sector’s market capitalisation since November 2021, tighter monetary conditions have driven investors to seek refuge in less risky assets.

As one venture capitalist noted:

It’s very easy to be fearful right now, not only in crypto, but generally in the world.

Jared Madfes, partner, Tribe Capital

Madfes suggested that people’s expectations of a further collapse in bitcoin’s price reflected the “inherent fear in the market”.

Crypto Anxiety Pervasive

Interestingly, it wasn’t just notoriously conservative institutional investors who expressed doubts about the industry. Close to a quarter of retail investors described cryptocurrencies as “worthless”, although a similar amount believed they were “the future”:

MLIV Pulse Survey. Source: Bloomberg

One other conspicuous finding was that retail investors were twice as likely to be seen as Bitcoin maximalists. And it’s little wonder that venture capitalists prefer other cryptos over Bitcoin, particularly when one considers the exponential returns available with initial coin offerings (ICOs), premines and discounted tokens.

Kevin O’ Leary, an experienced investor of Shark Tank fame, believes that crypto is yet to see see the bottom as there hasn’t been a “panic event”, typical of most other asset classes:

Wrong or right? Nobody knows, but either way it would be prudent to expect the unexpected.

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