Deutsche Bank has issued a warning that Bitcoin (BTC) may experience a significant drop below $20,000, revisiting the lows seen in 2022. Despite this caution, many experts believe that Bitcoin could reach an all-time high of over $100,000 by the end of the year.
A recent survey indicates that investors are currently bearish on Bitcoin, with concerns about its potential to drop below $20,000. While Bitcoin has shown price stability around the $70,000 level, respondents in the Deutsche Bank survey overwhelmingly expressed pessimism about its future.
Around 3,600 people participated in the survey, with one-third of respondents predicting that Bitcoin could plummet from $50,000 to $20,000. These levels were last seen during the 2022 bear market. However, 40% of respondents expressed confidence that Bitcoin will continue to thrive in the coming months. On the other hand, 38% expect the digital asset to disappear completely, and 1% consider Bitcoin to be a passing fad.
The recent introduction of Bitcoin spot ETFs makes it unlikely that BTC will experience a bearish turn. This development strengthens Bitcoin’s future and distinguishes it from being perceived as a fad or facing the possibility of disappearing. As recently reported, BlackRock’s Bitcoin ETF has accumulated nearly $20 billion in assets, placing it among the top 3% of ETFs worldwide.
According to ETF expert Eric Balchunas, the Bitcoin ETF currently ranks 88th among all ETFs. This outperformance of the majority of ETFs, both at present and during their launch, reflects the significant interest in digital assets among institutional investors.
While much of the interest is coming from the U.S. market, Europe and Asia are also showing growing interest. As reported, Hong Kong is preparing to launch Bitcoin Spot ETFs with substantial 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. If approved by the SEC, experts anticipate an increase in the number of ETFs and ETF assets.
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 level, the altcoin is still up 4.5% for the week.
The upcoming Bitcoin halving is considered one of the most bullish events for the cryptocurrency. Historically, this event has led to new all-time highs for Bitcoin. Occurring every four years, the halving reduces the number of tokens produced by the network and is designed to decrease supply and drive up prices.
The halving has generated increased interest in BTC from both retail traders and institutional investors. With less than two weeks until the halving, experts anticipate a surge in trading volume, which could drive up demand and prices. However, some caution that it may result in a “buy the rumor, sell the news” situation, leading to minimal price action during and immediately after the event.