Deutsche Bank has issued a warning that Bitcoin (BTC) could drop below $20,000, revisiting the lows of 2022. While many experts predict that Bitcoin could reach an all-time high of over $100,000 by the end of the year, a recent survey shows that investors are bearish about its future.
The survey conducted by Deutsche Bank included around 3,600 respondents, and one-third of them predicted that Bitcoin would plummet from $50,000 to $20,000, levels last seen during the bear market of 2022. On the other hand, 40% of the respondents believe that Bitcoin will continue to thrive in the coming months, while 38% expect it to disappear entirely. Only 1% consider Bitcoin to be a passing fad.
The recent introduction of Bitcoin spot ETFs makes it unlikely for BTC to experience a bearish turn. In fact, it solidifies its future and distinguishes it from being perceived as a fad or facing the possibility of disappearing. BlackRock’s Bitcoin ETF, for instance, has already amassed $20 billion in assets, placing it among the top 3% of ETFs globally.
According to ETF expert Eric Balchunas, the Bitcoin ETF currently ranks 88th among all ETFs, outperforming the majority of them. This demonstrates the immense interest in digital assets among institutional investors, not just in the U.S. but also in Europe and Asia. Hong Kong, for example, is preparing to launch Bitcoin Spot ETFs with significant Chinese funding, indicating the rise of digital assets in traditional finance. Additionally, Cboe plans to issue a multi-share class fund that combines ETFs and mutual funds, which could lead to an increase in the number of ETFs and ETF assets if approved by the SEC.
As of now, BTC is trading at $68,650, experiencing a slight drop of less than 1% in the last 24 hours. Despite breaching the $70,000 support, the altcoin is still up by 4.5% on a weekly basis.
The upcoming Bitcoin halving is expected to be a bullish event for the cryptocurrency. In the past, it has led to new all-time highs for Bitcoin. The halving, which occurs every four years, reduces the number of tokens produced by the network, ultimately reducing supply and potentially increasing prices.
This event has attracted both retail traders and institutional investors to BTC. With less than two weeks to go until the halving, experts anticipate a surge in volume, driving up demand and prices. However, some caution that the event could result in a “buy the rumor, sell the news” situation, where there is little price action during and immediately after the event.
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