A Majority of Wall Street Investors Expect Another 50% Correction in Bitcoin (BTC), Here’s Why

Over the last week, the world’s largest cryptocurrency Bitcoin (BTC) managed to stay afloat around $20,500 levels. Bitcoin has been giving mixed signals about its next direction of price swing.

However, a majority of Wall Street investors believe that Bitcoin could be crashing another 50% from the current price all the way up to $10,000. According to the MLIV Pulse survey, 60% of the 950 investors surveyed think $10,000 could be coming for BTC. But the rest 40% believe that Bitcoin will gain 50% from here all the way to $30,000.

Over the last two months, the crypto industry has been facing severe challenges in terms of troubled lenders, collapsing crypto projects and currencies, and much more. The bearish sentiment in global macros is adding to further sell-side pressure. Over the last year, the broader crypto market has corrected nearly 70% wiping out $2 trillion of investors’ wealth.

As a result, the market opinions. have turned extreme. During the MLIV Pulse survey, some 28% of the overall respondents showed strong confidence in crypto assets. However, 20% believed that cryptocurrencies are worthless. Jared Madfes, partner at Tribe Capital, a venture capital firm told Bloomberg:

“It’s very easy to be fearful right now, not only in crypto, but generally in the world”. The expectations for a further drop in Bitcoin reflect “people’s inherent fear in the market.”

Growing Crypto Regulations

The recent events with the collapse of the Terra ecosystem, Celsius Networks, Voyager Digital, and much more call for greater regulatory scrutiny of the crypto space. A majority of the respondents in the survey called government supervision an overall positive step for the crypto sector.

Many believe that strong regulatory measures would lead to greater crypto adoption among retail and institutional players. Also, a majority of respondents put their trust in Bitcoin and Ether. The respondents said that BTC and ETH will remain the driving force in the crypto sector.

Ed Moya, senior market analyst at Oanda Corp, said: “Bitcoin still is powering large parts of the cryptoverse, while Ethereum is losing its lead”.

Respondents also shared their take on non-fungible tokens (NFTs). An overwhelming majority of over 90% said that NFTs are just status symbols or art projects. Only 9% refer to them as an investment opportunity.