Bitcoin has had a great 2020 year. The supporters of Bitcoin, which makes a strong impression with its rise, are also increasing.
Top analysts in both crypto and traditional finance, along with the biggest believers in the asset, expect rare cryptocurrencies to reach as high as $ 400,000 each. So why is only 12% of Deutsche Bank customers responding to a crypto-related survey predicting that their price per BTC will reach $ 100,000 or more?
Some of the greatest investors the world has ever known have built their fortunes on opposite strategies. Warren Buffett was an advocate of being fearful while others were greedy. Baron Rothschild is referred to as “buy blood in the streets.” And John Templeton warned that “bull markets are born out of pessimism, grow with skepticism, mature in optimism, and die of enthusiasm.”
Black Thursday in 2020 pointed to a pessimism for Bitcoin, an asset that is threatening to fall to zero for the first time. The liquidation engine of the derivatives platform BitMEX had to be shut down to stop the cascade effect that was causing the crash.
As the asset recovered before halving, crypto investors remained skeptical given the immediate impact of the epidemic on the global economy. For the remainder of the year, it became the norm to talk about the digital gold narrative and the way Bitcoin “transformed” into a respectable financial asset, thanks to the fact that the asset outperformed all other traditional assets in a year when money was most needed.
But are estimates of $ 400,0000 and beyond a sign that the market is becoming exuberant and is at risk of running out of momentum as Templeton suggests? So don’t most of the Deutsche Bank survey respondents see that the cryptocurrency can reach $ 100,000 or more per BTC?
What does the survey say?
The leading cryptocurrency in terms of market capitalization for most in the financial world has caused a wider range of criticism from experts outside the crypto industry realm, whether believer or not.
Instead of listening to reputable Bitcoin analysts Willy Woo or Charles Edwards, traditional finance pays closer attention to analysts than Wall Street-focused outlets they know and trust.
Deutsche Bank customers were questioned as part of a recent survey of their thoughts on where Bitcoin might be a year from now. The asset’s price next year reflects the results of an apparently ongoing bull market now.
However, the price predictions provided by the participants paint much less bullish charts than most. The majority acknowledges that Bitcoin will trade at the higher level in 2021, ranging from $ 20,000 to $ 49,999. Less than a third of those surveyed think that Bitcoin will be under $ 20,000 by 2021.
However, only 12% think that the cryptocurrency, which is expected to change the world, will exceed $ 100,000 next year.