- Despite growing cryptocurrency acceptance, only a small percentage predict Bitcoin will exceed $75,000 by year-end.
- Arthur Hayes predicts Bitcoin halving and fiscal policies may cause short-term market volatility but remains long-term bullish.
A recent survey conducted by Deutsche Bank revealed that over half of the participants view Bitcoin as an asset class. This survey, which included responses from 3,600 individuals, noted an increase in the acceptance of Bitcoin and cryptocurrencies.
Fifty-two percent of the respondents believe Bitcoin and cryptocurrencies will play an important role in future transactions and as an investment asset. This represents an increase from the previous year when less than 40% of those surveyed were optimistic about cryptocurrencies.
Despite this growing acceptance, only a small percentage of respondents expect Bitcoin’s price to rise above $75,000 by the end of the year, with about one-third predicting it could fall below $20,000.
Related: Ripple’s XRP Trading Surges 75% During Bitcoin Halving – $1 Price Prediction for Q2
The findings come at a time when there’s an uptick in institutional interest in cryptocurrencies, highlighted by the SEC’s approval of spot Bitcoin ETFs. This regulatory approval has typically been seen as a positive development for the market, yet the survey’s price projections reflect a more conservative outlook among some participants.
Bitcoin’s price has experienced big growth, reaching over $72,000 and setting new records, buoyed by increased institutional involvement.
Analysts remain optimistic about the cryptocurrency’s prospects, particularly with the anticipated Bitcoin halving event, which tends to lead to a price increase due to the reduced supply of new bitcoins.
Arthur Hayes, co-founder of BitMEX, offered an alternative analysis, suggesting that the upcoming Bitcoin halving, alongside certain fiscal policies from the U.S. Federal Reserve and Department of the Treasury, could lead to temporary market downturns.
“The narrative of the halving being positive for crypto prices is well entrenched. When most market participants agree on a certain outcome, the opposite usually occurs,” he wrote.
Read more: Bitcoin ETF Market Signals Strength: GBTC Outflows Reach Monthly Low
He argues that while the halving is generally expected to boost prices, consensus expectations can sometimes result in opposite outcomes, especially in the context of current dollar liquidity conditions. Hayes predicts a period of adjustment around the halving but maintains a long-term positive outlook on cryptocurrencies.
Furthermore, Hayes speculates that subsequent to this period of adjustment, U.S. fiscal policies might introduce liquidity into the market, potentially stimulating a recovery in asset prices.
