Consumer trust in cryptocurrencies grows, with increased optimism for Bitcoin’s future and price, according to a Deutsche Bank survey.
In terms of consumer sentiment, cryptocurrency, especially Bitcoin, is garnering increased trust from consumers, as revealed by a recent Deutsche Bank survey. This change marks a significant move in the perception of digital currencies amidst ongoing discussions about their volatility and future as financial instruments.
A Deutsche Bank inquiry into consumer attitudes towards Bitcoin and cryptocurrencies at large has brought to light a notable decline in skepticism. Despite ongoing worries about price fluctuations, the survey highlights a cautiously optimistic outlook for the digital currency market. Conducted with over 3,600 participants, the findings show a majority — 52% to be exact — now view cryptocurrencies as a significant future asset class and a viable means for transactional purposes. This optimism reflects a considerable leap from a similar assessment in September 2023, where confidence barely reached 40%.
Interestingly, the perspective that cryptocurrencies are merely a temporary trend has almost vanished, with less than 1% of respondents holding onto this belief. The survey also probes into Bitcoin’s pricing, especially in anticipation of the forthcoming halving event. Analysts at Deutsche Bank suggest that regulatory developments, potential central bank policy adjustments, and the prospects of a U.S.-approved spot Ethereum ETF could lend support to Bitcoin’s value.
Concerns about a drastic price decline to below $20,000 by the end of 2024 were expressed by a third of those surveyed, a slight reduction from earlier in the year. Contrastingly, a modest 10% are optimistic about Bitcoin exceeding $75,000 by year’s end.
Recent Developments
The landscape of cryptocurrency, particularly Bitcoin, has been anything but static in the early months of 2024. Approval of the first U.S.-based spot Bitcoin ETFs by the SEC in January marked a watershed moment, with a subsequent surge in investments, including a remarkable $1 billion daily net inflow recorded on March 12. Following this, Bitcoin’s value soared to a new high of $73,794 in mid-March. Analysts are now forecasting even more substantial growth post-halving, with some predictions suggesting a potential increase of up to 160%, potentially pushing the cryptocurrency’s value to the $150,000 mark.
The halving, a pivotal event in the cryptocurrency world, will occur around April 20. This event could fuel bullish trends for Bitcoin, driven by increased demand and various macroeconomic factors