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(This April 8 story has been corrected to correct Bitcoin record high in paragraph 7.)
LONDON (Reuters) – Consumer skepticism about Bitcoin is waning somewhat, a Deutsche Bank survey published on Monday showed, although just under a third of respondents still expect a sharp price fall by the end of 2024.
WHY IT'S IMPORTANT
Although people have poured billions of dollars into Bitcoin hoping for returns when the price rises, top regulators have said Bitcoin has no inherent value and carries risks.
BY THE NUMBERS
Deutsche Bank said it surveyed more than 3,600 consumers, with 52% of respondents saying cryptocurrencies will be an “important asset class and payment method” in the future. In a survey in September 2023, less than 40% said this.
A third of US respondents expect Bitcoin to fall below $20,000 by the end of 2024. This group is getting a little smaller. In February it was 35% and in January 36%.
The number of people who believe cryptocurrencies are “just a fad that will eventually fade” has dropped to less than 1%.
Still, only 10% of respondents expect Bitcoin to be above $75,000 by the end of the year.
CONTEXT
hit a three-week high on Monday. It hit an all-time high of $73,803.25 in March, recovering from a dramatic decline in 2022.
According to analysts, the recent rally is due to enthusiasm over spot Bitcoin ETFs and expectations of interest rate cuts.
WHAT'S NEXT
Some analysts see Bitcoin's recent rally above $70,000 as a sign that investors are ignoring warnings.
Analysts at Deutsche Bank expect Bitcoin price to be supported by the upcoming “Bitcoin halving,” as well as regulation, central bank rate cuts and expectations that the SEC will approve spot Ethereum ETFs.
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