Bitcoin's downward trend is difficult to stop! Deutsche

Indra55

Due to the optimism brought about by the listing of Bitcoin ETFs, the spot price of Bitcoin surpassed $46,000 earlier this year, reaching a two-year high of $46,995. However, the good times were short-lived, and the current upward trend seems to be short-lived as the price of Bitcoin has fallen back to below $40,000.

However, this is not the most feared aspect for investors. According to a report from Deutsche Bank, the winter for cryptocurrencies may not be over, as more than half of the surveyed investors believe that major cryptocurrencies will experience a collapse in the next two years.

The bank conducted the survey on 2,000 retail investors in the United States, the United Kingdom, and Europe after the listing of Bitcoin ETFs. Over one-third of the respondents stated that by the end of the year, the price of Bitcoin will fall below $20,000, and more people expect the cryptocurrency to disappear.

Deutsche Bank points out that this pessimistic sentiment is due to various lessons from the past, such as the collapse of cryptocurrency exchange FTX and the TerraUSD crash, combined with the tightening regulatory trends in the United States, collectively causing a lack of confidence among retail investors.

Why the decline?

Antoni Trenchev, Co-founder of cryptocurrency lending company Nexo, suggested that part of the recent decline in Bitcoin may be due to the "buy the rumor, sell the news" mentality. This means that investors push up asset prices by buying in anticipation of a rise and choose to take profits after the actual news is released, leading to a decline in asset prices.

On the other hand, Bitcoin ETFs present a completely different trading atmosphere from spot Bitcoin. As of this Wednesday, data shows that investors withdrew $4.4 billion from the previously largest Bitcoin trust fund, Grayscale, but invested $5.3 billion in other nine ETFs, maintaining a net inflow trend for Bitcoin ETFs.

ETF analyst Eric Balchunas stated that Bitcoin ETFs only involve a small part of the spot Bitcoin market, and although people in the fund market are still buying, those who bought Bitcoin in advance are selling.

Craig Erlam, Senior Market Analyst at OANDA, takes it in stride, stating that he is already accustomed to the volatility in the Bitcoin field. Now, what matters is what will happen next and whether there is a possibility to ignite people's enthusiasm for Bitcoin and bring further gains.

Iti9

This one is also going to fall quite significantly.

Jafar224

Emotions, you have to see whether they are long-lasting or not!