Crypto Weekly: 44% Of Investors See Bitcoin Dipping Below $30K This Year

Analysts think corporates fear that what affected Bitcoin will continue pushing prices down.
Author:
Publish date:

Bitcoin Investors Show Mixed Reactions Despite “Huge Discount,” Grayscale Bitcoin Trust Unlocking Divides Analysts

When Bitcoin reached an all-time high (ATH) of $64,863 on April 14, 2021, the path was clear for investors. Three months later, the price slumped by approximately 46%, dampening the mood on buying and selling the leading virtual currency.

Partly, the drop coincided with China cracking down on Bitcoin projects such as mining and Elon Musk, Tesla’s CEO, tweeting that his company will no longer accept BTC payments due to the currency’s impact on the environment.

Now, investors are either allocating or reducing their stake in Bitcoin-based investments. Below we sample the latest twists and turns in the Bitcoin investment landscape.

Note: Interested in getting periodic e-mail notifications when articles are published here? Drop your e-mail in the box below!

44% of Investors See Bitcoin Dipping Below $30K this year

A recent survey conducted by CNBC revealed that 44% of investors expect the price of the leading coin to dip below $30K “by the end of the year.” CNBC brought together a group of portfolio managers and equity strategists.

According to the survey, the rest of the respondents (56%) were “more optimistic.” However, their optimism is divided between BTC reaching $45K (25%), $55K (25%), and $60K (6%).

Some experts also think Bitcoin and the larger crypto economy are headed for a significant boost due to the weakening of government-issued currencies.

Institutional Investors Initially Not Buying Bitcoin Despite “Huge Discount,” But the Trend is Changing

The current prices of below $35K is a huge discount to retail and corporate investors. Unfortunately, investors are seemingly not appreciating the low prices, which are almost half of BTC’s ATH.

Data from Coin Metrics, a blockchain-analysis company, shows that institutions are hesitating to take the discount. Analysts think that corporates fear that what affected Bitcoin will continue pushing the prices down.

In May this year, a drop in addresses holding more than 1,000 Bitcoins highlighted this phenomenon. The number plummeted from roughly 2.5K in February to approximately 2.1K. Another analysis by Glassnode observed that amount of BTCs held on crypto exchanges like Coinbase was stagnant, confirming the trend.

However, recent data provided by Glassnode shows that deep-pocketed investors, also known as whales, are making a comeback. According to the data, addresses with more than 1,000 BTCs have reached a 2-month high by and the amount held by whales rose by more than 80K to reach a cumulative 4.2 million Bitcoins.

Grayscale Bitcoin Trust (GBTC) Unlocking Divides Analysts and Investors’

The unlocking date for GBTC is fast approaching, and analysts/investors disagree on its impact on the Bitcoin market.

Optimists think that the unlocking is likely to boost the price of the leading virtual currency. They argue that those who borrowed money to buy GBTC shares will need to actually purchase Bitcoin to finance their crypto loan.

On the other hand, pessimists see a negative tide emanating from the unlocking. For instance, a report released by JPMorgan in June suggested that GBTC unlocking and consequent sale of its shares would result in “an additional headwind for Bitcoin.”

Softbank Invests $200 Million in a Bitcoin Exchange, Germany Allows 4,000 Corporate Funds to Invest Up to 20% in Bitcoin

Softbank has invested 200 million US dollars in Mercado Bitcoin, a Brazilian cryptocurrency exchange, through its Latin America Fund. The fund supports startups in various fields such as financial technology, cryptocurrency, and education.

The exchange targets to use the investment to strengthen its infrastructure and expand its operations. According to Softbank Group’s COO, Marcelo Claure, virtual currencies “have incredible potential in Latin America.”

In Germany, approximately 4,000 corporate funds with assets under management worth a cumulative two trillion euros can allocate up to 20% in crypto, such as BTC. This is after the country’s parliament passed the Fund Location Act in April and which became active on July 1.

Note: Interested in getting periodic e-mail notifications when articles are published here? Drop your e-mail in the box below!

Also read:

Top Performing Dividend ETFs For June 2021

Top Performing Dividend ETFs For The 1st Half Of 2021

2 ETFs To Consider Buying (And 1 To Avoid) This Week

Top Performing Leveraged ETFs For June 2021

A Big First Half For Cannabis ETFs

Top 30 Performing ETFs For The 1st Half Of 2021

Top Performing ETFs For June 2021

Vanguard Dividend Appreciation ETF (VIG) About To Get A New Look

10 Under The Radar Dividend ETFs Worth Considering