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The Bitcoin (CRYPTO: BTC) price is down 3% since this time yesterday, currently trading for US$20,516 (AU$30,018).
Despite the retrace, the world’s top crypto by market cap remains up for the full week, having traded as low as US$19,341 last Monday.
However, as you’re likely aware, Bitcoin remains well-down from its 10 November all-time highs of US$68,790.
So, with the Bitcoin price having tumbled 70% since November, could it be looking at another 50% fall from here? Or is the world’s original token set for a 50% leap instead?
Wall Street surveyed on outlook for Bitcoin price
That’s the multi-billion dollar question the MLIV Pulse Survey set out to answer.
The survey, which took place over four days last week, asked 950 retail and institutional investors on Wall Street whether they expect the Bitcoin price to trade for US$10,000 or US$30,000 first.
With rising inflation and interest rates in mind, and the big sell-off that’s already seen in risk assets like high growth tech shares and cryptos, 60% of respondents said they believe the top crypto is more likely to fall to US$10,000 than rocket back to US$30,000.
As Bloomberg noted, retail investors were more sceptical about the broader crypto market than professional investors, with 24% of retail investors agreeing that “all cryptos are garbage” compared to 18% of institutional investors.
On the bullish side, 26% of professional investors believe “cryptocurrencies are the future”, compared to 23% of retail investors.
As for when the Bitcoin price might bottom?
Searching for the lows
In commentary unrelated to the MLIV Pulse Survey, Marcus Sotiriou, analyst at GlobalBlock, reiterated the correlation between the tumbling Bitcoin price in 2022 and the abrupt return of higher than expected inflation in the United States, the world’s top economy.
According to Sotiriou (quoted by Bloomberg):
The only Bitcoin bottom signal for me is persistent data showing us that inflation is convincingly inflecting down. This should result in the Federal Reserve becoming less aggressive with their monetary policy, and therefore provide confidence that the liquidity crisis in the crypto market is over.
The latest inflation data out of the US is due Wednesday evening, Australia time.
