Optimism over a possible cryptocurrency market rebound is gradually dying down as the assets led by bitcoin take further pounding. Investors are now doubting if the market could return to bull by the end of the year.
A new survey conducted from July 5-8 showed that the majority of 950 investors involved believe bitcoin’s price could drop as low as $10,000. The survey, which was conducted by Bloomberg MLIV Pulse, also showed 28% of respondents expressed confidence that cryptocurrencies are the future of finance while 20% believe they are worthless.
The question posed was: “Which level will bitcoin trade at first? $10k or $30k? 60% of respondents said bitcoin would drop to $10k at first, according to the result published on Monday.
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The poll became necessary as the crypto industry undergoes its worst crisis, losing 40% of its value over a year. The resulting mass selloff has triggered loss of confidence among investors, prompting the debate on how further low they expect the coins to go.
Shark Tank star Kevin O’leary said last week he doesn’t believe we’ve seen the bottom yet. “It’s impossible to know where the bottom is,” he said, “I don’t believe we’ve seen the bottom yet and I have a different view of it.”
Volatility has been one of cryptocurrencies’ biggest concerns. The current market situation which has seen the assets lose about $2 trillion of its all-time-high value has cast a huge doubt on the minds of crypto believers. Further drop in bitcoin price will mean increased pessimism.
What about bankruptcy?
The number of crypto companies filing for bankruptcy is increasing as the market dips further. Last week, crypto lender Voyager filed for chapter 11 bankruptcy over volatility and contagion in the crypto markets.
“The prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital (‘3AC’) on a loan from the company’s subsidiary, Voyager Digital, LLC, require us take deliberate and decisive action now,” the company said in a statement.
3AC is one of the most prominent crypto hedge funds in the world, with assets worth about $10 billion. The company’s default spell more bankruptcies for a chain of other companies that their existence depend largely on its ability to stay afloat. So, just like Voyager, many others are expected to file for bankruptcy if the market does not bounce back soon.
This means that investors’ expectation that bitcoin will drop to $10,000 will mean more harm to the already troubled crypto market. Though bitcoin is expected to return $30,000 by the end of the year, the free fall trajectory may have put a lot of companies out of business.
They should stop panicking, the problem is not cryptocurrency, rather humans who failed to understand its essence, electing to make it what it’s not. One of the key things True Path is building is that of making cryptocurrency and other digital assets useful, by bringing tangible utilities to the ecosystem, with metaverse component expanding the space.
So, if investors can rethink their strategy and start investing in real projects with practical utilities, we won’t be reading daily about the rise and fall of bitcoin; that is how it can go mainstream while preaching its gospel of decentralization.
Time of chasing shadows has passed, create recognizable value and invite people to participate. TruePath is poised to help create that path…