LONDON (Reuters) – Consumers are becoming slightly less sceptical about bitcoin, a Deutsche Bank survey published on Monday showed, although just under a third of those questioned still expect its price to drop sharply by the end of 2024.
WHY IT’S IMPORTANT
Although people have poured billions of dollars into bitcoin, hoping for returns if its price rises, top regulators have said it has no inherent value and presents risks.
BY THE NUMBERS
Deutsche Bank said it surveyed more than 3,600 consumers, with 52% of respondents saying cryptocurrencies will be an “important asset class and method of payment transactions” in future. Less than 40% said that when surveyed in September 2023.
A third of U.S. respondents expect bitcoin to drop below $20,000 by the end of 2024. This group is getting slightly smaller. It was 35% in February and 36% in January.
The number of people who think cryptocurrencies are “just a fad that will eventually fade” dropped to less than 1%.
Still, only 10% of respondents expect bitcoin to be above $75,000 by year-end.
CONTEXT
Bitcoin hit a three-week high on Monday. It reached an all-time high of $73,794 in March, recovering from a dramatic plunge in 2022.
The recent revival is due to excitement about spot bitcoin ETFs and expectations of rate cuts, analysts say.
WHAT’S NEXT
Some analysts see bitcoin’s recent recovery above $70,000 as a sign that investors are shrugging off the warnings.
Deutsche Bank analysts said expect bitcoin’s price to be supported by the upcoming “bitcoin halving”, as well as by regulation, central bank rate cuts, and expectations that the SEC will approve spot ethereum ETFs.
(Reporting by Elizabeth Howcroft; Editing by Dhara Ranasinghe and Alexander Smith)