A recent survey by Deutsche Bank reveals that there is a shift in consumer sentiment to bitcoin and cryptocurrencies and reduced skepticism. More than 3,600 consumers surveyed said 52% of respondents saw cryptocurrencies as “an important asset class and method of payment processing” for the future. This is an increase from less than 40% in September 2023, which had that belief.
A third of respondents in the United States predict that bitcoin could fall below $20,000 by the end of 2024. However, the rate of those waiting for such a decrease decreased slightly from 35% in February to 36% in January. In particular, the number of people who see cryptocurrencies as “a whim that will eventually disappear” has fallen below 1%.
Despite increasing optimism, only 10% of respondents have the expectation that Bitcoin's value will rise above $75,000 by the end of the year. Bitcoin recently reached a three-week high and previously reached an all-time high of $73,803.25 in March, returning from a significant decline in 2022.
According to analysts, the revival in bitcoin's value is attributed to the enthusiasm around spot bitcoin ETFs and the expectation that interest rates will be lowered. In addition, some analysts interpret the recent rise of the price of bitcoin above $70,000 as an indication that investors have ignored regulatory warnings.
Looking ahead, Deutsche Bank analysts suggest several factors could support the price of bitcoin. These include the upcoming “bitcoin halving,” expected regulatory developments, potential central bank rate cuts, and expectations that the SEC could approve spot ethereum ETFs.
Reuters contributed to this article.