New Report Reveals Consumer Trust in Cryptocurrencies Surges
Consumer trust in cryptocurrencies, especially Bitcoin, is on a consistent rise as per a recent survey conducted by Deutsche Bank. The report has signaled evolving sentiments and lingering worries about upcoming price volatility.
This survey indicated that customers are cynical about the Bitcoin price decline with less than a third of the survey expecting a sharp decline by December, 2024. This survey was published on 8th April with around 3600 consumers participating in the poll.
Importance of Digital Assets
Meanwhile, a little above half of investors claim that digital assets are an important asset class and have a practical utility as a mode of payment in transactions. Another survey conducted by Deutsche Bank in 2023 indicated less than 40% confidence among investors.
The survey noticed that the total number of skeptics who view cryptocurrencies as a fade that will disappear has dropped to less than 1%.
The same survey analyzed Bitcoin prices regarding the impact of the halving. Deutsche Bank analysts have opined that they expect Bitcoin prices to gain support from regulatory efforts. Central Bank has cut rates on account of a spot Ethereum ETF approval by the Securities and Exchange Commission (SEC).
Meanwhile, a third of the portion of survey participants anticipated that in case Bitcoin dipped to $20K by the end of 2024. The ratio of investors siding with this scenario was 35% in February and 36% in January.
Bitcoin Price to Rally in 2024
The survey results indicate that only 10% participants agreed that Bitcoin will print $75K by year-end. For the first month of the ongoing year, SEC approved the first US-based spot Bitcoin ETFs which that recorded around $1 billion in daily net inflows as of 12th March. For the middle of March, Bitcoin recorded a new ATH of $73,794.
There are some estimates that suggest that Bitcoin prices will continue to undergo a 160% increase following the halving with a $150K price projection. On account of the halving event, investors have assumed a bullish stance on crypto prices for the remainder of the year. These factors have led to a visible spike in demand amidst supportive macroeconomic factors that have aided in price appreciation.
Another price analysis of the Bitcoin halving impact published on Cointelegraph noticed that the probability of Bitcoin continuing the current rally is high. The analyst noticed that before halving there was a slump in ETF inflows but there is a new wave of institutional investors ready to seek exposure in Bitcoin.
The 4th Bitcoin halving taking place on 20th April has set up the most bullish path for the Bitcoin cycle based on historical chart patterns on account of spot Bitcoin ETFs.
Stronger Bitcoin Fundamentals
As per Earth Wallet CEO, Sukhveer Sanghera, the fundamentals for Bitcoin rally are stronger than ever before. He noticed various important factors such as inflation hedges utility, increased utility, almost all Bitcoin mined, early ETF investments, and new use cases have consolidated Bitcoin’s upcoming meteoric rise. On the weekly chart, Bitcoin prices retraced by 5.6% and continued to trade above $63,600.
However, the decline was followed by 2.85% in the last 30 days and has rallied by more than 50% since the beginning of 2024 as per TradingView. Bitcoin price action is going to be bullish for the long-term and halving events are historically followed by short-term correction duration.
However, if Bitcoin price is able to rise above the $65K resistance it could signal that the correction has matured as per CEO Temujin Louie.
He noted that Bitcoin halvings are followed by a slump that is expected to continue consolidation as long as support around $58K holds. In case, Bitcoin surpasses the recent highs it could lead to a rapid increase to $100,000 if there is a favorable investment quantity. Meanwhile, in the past Bitcoin spot ETF inflows have dwindled and turned to negative on the week of halving as per Dune analytics.
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