Given the continued pressure on the cryptocurrency, Bitcoin might fall as low as $10,000 this year.
According to a Bloomberg study of 950 investors, 60% think that bitcoin, which is now trading at $20,000, may lose half of its value.
As central banks and governments raise interest rates and terminate loose monetary policies, bitcoin has taken a beating recently.
Retail investors were found to be more skeptical about cryptocurrencies than their institutional counterparts, with roughly a quarter labeling the asset class as “trash,” according to the poll.
Since peaking at about $69,000 in November, Bitcoin has dropped more than two-thirds of its value, and it hasn’t traded below $10,000 since September 2020.
As the US prepares to release June inflation figures this week, the situation might worsen, opening the door for the Federal Reserve to raise rates even harder and quicker.
Inflation is expected to increase to 8.7% in June from 8.6% in May, according to economists.
Venture capitalist Jared Madfes stated: “It is extremely simple to be afraid right now, not just in cryptocurrency but generally in the globe.”
It exhibits people’s ingrained apprehension about the market.
The cryptocurrency meltdown is probably going to increase pressure on governments to tighten sector regulation.
As people invested cash they had saved during lockdowns, the value of digital currencies increased throughout the epidemic.
The Financial Conduct Authority, a watchdog for the City, issued a warning in May that crypto goods were not covered by financial compensation plans.