Retail Investors Predict Bitcoin to Plummet Below $20K: Deutsche Bank Study

• Bitcoin [BTC] Faces a Slump in the Wake of Spot Exchange-Traded Funds (ETFs)
• Details of the Deutsche Bank Survey
• Industry Impact of Spot Bitcoin ETFs Approval in the U.S.
• Fears of a Crypto Winter
• Lack of Cryptocurrency Understanding

Bitcoin [BTC] Faces a Slump in the Wake of Spot Exchange-Traded Funds (ETFs)

Bitcoin$42,260 -0.64%, the leading cryptocurrency, has experienced a downturn following the recent introduction of spot exchange-traded funds (ETFs) in the United States. According to a retail investor survey conducted by Deutsche Bank, a German banking institution, this downturn could potentially deepen.

Details of the Deutsche Bank Survey

Deutsche Bank performed a survey involving 2,000 consumers from the U.S., U.K., and Europe in the aftermath of the spot Bitcoin ETFs approval. The survey results, which were released in a report on Tuesday, indicate a pessimistic outlook for the digital asset. More than a third of the respondents predict that Bitcoin prices will plummet below $20,000 before the end of the year. Furthermore, more participants anticipate the vanishing of the cryptocurrency rather than its persistence. The survey revealed that only 39% think Bitcoin will endure, while 42% foresee its extinction.

Industry Impact of Spot Bitcoin ETFs Approval in the U.S.

The approval of spot Bitcoin ETFs in the U.S has been hailed as a significant shift by a number of industry players. This development is set to pave the way for mainstream money to infiltrate the sector. Investors who previously could not trade digital assets can now leverage inexpensive and liquid ETFs to gain exposure without owning the actual underlying cryptocurrency.

Fears of a Crypto Winter

However, apprehensions regarding a crypto winter persist. Over half of the survey respondents express worries about the potential collapse of a major cryptocurrency within the next two years. Deutsche Bank attributed this negative sentiment to historical occurrences, like the 2022 fall of crypto exchange FTX$3.28 -5.38% and the collapse of terraUSD (UST). The ongoing regulatory clampdown in the U.S. is also viewed as a deterrent.

Lack of Cryptocurrency Understanding

The survey results also shed light on a widespread lack of cryptocurrency understanding. Two-thirds of consumers have minimum or no comprehension of digital assets, as the report pointed out.

Edited by Jonathan Stoker