The world’s largest cryptocurrency broke beneath $40,000 yesterday, and many retail investors believe it is heading even lower by year-end, according to a Deutsche Bank Research report.
Over one-third of people surveyed think that Bitcoin will fall below $20,000 by next January, according to the report. About 15% of people said they expect the price will be between $40,000 and $75,000 by year-end.
Hype around the much-anticipated launch of spot Bitcoin ETFs on Jan. 11 sent the price of Bitcoin to $49,000, the highest it has been since March 2022. Sell-offs since have sent the price of the asset down over 20%, to around $39,000 as of 11:52 am in New York on Tuesday.
New spot Bitcoin ETFs are expected to expand institutionalization of the oldest digital asset, according to the report’s analysts Marion Laboure and Cassidy Ainsworth-Grace. The majority of ETF flows, however, have come from retail investors, according to the report.
The survey, conducted between Jan. 15 to Jan. 19, asked 2,000 people in the US, UK and the Eurozone about their views on Bitcoin’s price and volatility.
This article was provided by Bloomberg News.