Consumer sentiment regarding bitcoin’s future trajectory appears to be split, with a recent survey conducted by Deutsche Bank indicating a significant divergence in expectations.
According to the Deutsche Bank Bitcoin survey, approximately one-third of respondents anticipate bitcoin’s value to dip below $20,000 by the year’s end, a drop of around $50,000 from its current price. This sentiment resembles the depths of the bear market witnessed in 2022.
The Deutsche Bank Bitcoin Survey
In contrast, only 10% of the surveyed individuals envision bitcoin surpassing $75,000 by December.
The survey, which included 3,600 participants, also revealed a spectrum of attitudes toward Bitcoin’s longevity, with 40% expressing confidence in its sustained growth over the next few years and 38% foreseeing its eventual disappearance. Interestingly, less than 1% deemed Bitcoin merely a passing fad.
As of Tuesday afternoon, bitcoin traded at approximately $68,900, representing a 4% decrease since its recent reclaiming of $72,000 mark. Despite hitting an all-time high of $73,798 in mid-March, the digital asset’s value remains subject to volatility. Notably, its 67% surge since the beginning of the year has outpaced traditional assets such as global stocks and gold.
Influx of Capital in Spot BTC ETFs
The recent influx of funds into US spot-Bitcoin Exchange-Traded Funds (ETFs) has fueled optimism among supporters, who argue that increased demand will buoy the digital asset. However, speculators have argued that Bitcoin lacks intrinsic value and is merely a speculative asset awaiting a market correction.
The upcoming Bitcoin halving, which occurs every four years and reduces the rate at which new bitcoin are created, is also viewed as a bullish indicator. However, the shifting dynamics of capital flows within the digital asset investment landscape have added a layer of uncertainty.
SkyBridge Capital founder Anthony Scaramucci recently predicted that the price of bitcoin could go as high as $170,000 after the halving event.
“I’m simply saying it should trade to half of the valuation of gold, which is a six to eight, ten times move from here. However, it’s not going to happen overnight, it’s going to come with great volatility,” said Scaramucci.
Significant Outflows
Recent data from Wu Blockchain indicates significant outflows from Bitcoin spot ETFs, with notable shifts observed in various investment products. Grayscale’s GBTC experienced a substantial single-day net outflow of $303 million, while the newly launched Bitwise ETF NYSE saw a notable inflow of approximately $40.33 million.
Despite the outflows from GBTC, newly launched ETFs collectively acquired over 520,000 BTC over three months, signaling continued interest in the asset class. However, traditional investment giants like BlackRock and Fidelity experienced subdued inflows in comparison.
Amidst these fluctuations, the Bitwise BITB ETF emerged as a standout performer, attracting a significant inflow of funds ($40.33 million). However, overall ETF inflows remained relatively weak, indicating a sense of caution among investors.
While talking about these outflows earlier this year, Bloomberg ETF analyst Eric Balchunas said that they will stabilize the Bitcoin market while adding that the outflows might be nearing their end.
