Deutsche Bank’s survey of retail investors reveals that a larger portion of those surveyed expect Bitcoin to vanish rather than persist, as stated by the bank. After the introduction of spot exchange-traded funds (ETFs) in the United States earlier in the month, the world’s largest cryptocurrency, Bitcoin (BTC), has experienced a decline and may face further decreases, according to German lender Deutsche Bank’s survey of retail investors.
Deutsche Bank conducted the survey, polling 2,000 individuals in the United States, the United Kingdom, and Europe, following the authorization of spot Bitcoin ETFs.
Of those surveyed, more than a third believe that Bitcoin’s price will dip below $20,000 by the end of the year, and a greater number of respondents foresee the cryptocurrency vanishing rather than enduring. The survey indicated that 39% of participants are optimistic about Bitcoin’s continued existence in the years to come, while 42% are inclined to believe it will disappear.
The approval of spot Bitcoin ETFs in the United States was perceived as a significant development within the industry, with an anticipation of mainstream capital pouring into the sector. Investors who were previously unable to trade digital assets can now use cost-effective and liquid ETFs to gain exposure without the need to possess the underlying cryptocurrency.
The cryptocurrency market may still be in a downturn, as “more than half of the respondents expressed concerns about a major cryptocurrency experiencing a collapse within the next two years,” according to the bank.
Deutsche Bank also notes that this negative sentiment may be influenced by past incidents, such as the demise of the crypto exchange FTX in 2022 and the failure of terraUSD (UST). The ongoing regulatory crackdown in the United States is also seen as a looming factor.
The results of the bank’s survey also underscore a lack of familiarity with cryptocurrencies, with two-thirds of respondents having limited or no knowledge of digital assets, the report further added.
