- The majority of Wall Street investors surveyed expect a new BTC loss of up to 50%.
- Analysts also do not see a clear floor for the price of the cryptocurrency.
- Glassnode analysts see “many signs” in the market that there has been a general capitulation of investors and miners.
Bitcoin’s decline continues to deepen and its price is now closer to $18,000 as the outlook for the cryptocurrency among investors turns increasingly negative.
Fewer analysts now see the world’s largest digital currency by market capitalization holding out at the $20,000 psychological level. On Wednesday, the collapse of the cryptocurrency was greater than that of the previous day.
As of 9:52 a.m. (GMT -4), Bitcoin was trading at $19,270, according to CoinMarketCap.
The rest of the cryptocurrencies have not fared better this week. The price of Ethereum (ETH) is once again approaching the US$1,000 band and could soon drop below that price.
Widespread Capitulation of Bitcoin Lovers
Experts believe that BTC could drop below US$18,000, the minimum reached by the cryptocurrency in June. Bitcoin still hasn’t found a floor, so it could also fall below that level at some point.
Glassnode analysts released a forecast in their latest report published on Monday. They wrote that there are “many signals suggesting a widespread capitulation (of investors and miners) has taken place, attention turns to whether a Bitcoin bottom is forming.” The blockchain analytics firm contends that the bear market “still requires an element of duration and time pain to establish a resilient bottom,” as long-term holders (LTHs), who are more confident in BTC, are bearing more and more unrealized losses. According to analysts, perhaps the market may need more "downside risk to fully test investor resolve, and enable the market to establish a resilient bottom." Since the all-time highs reached in November of last year, the market has lost around 75% of its value. “Even the strongest and longest-term Bitcoin holders are feeling the pressure,” analysts at Glassnode said.
Most Investors Lost Confidence
In the opinion of Wall Street investors, this debacle is far from over. On the contrary, they forecast an additional pullback of up to 50%.
The latest MLIV Pulse survey released this week by Bloomberg finds that nearly two-thirds of the 950 investors surveyed expect the price of BTC to hit $10,000 this year. Although the remaining 40% think that the cryptocurrency could reach US $30,000.
For the partner of the venture capital firm Tribe Capital, Jared Madfes, "“It's very easy to be fearful right now, not only in crypto, but generally in the world." He added that expectations of a further Bitcoin price decline reflect “the inherent fear of people in the market.” Despite this unfolding crisis, investors believe that both BTC and Ether will come out of the crisis with flying colors. They even believe that one of the two tokens will reemerge with greater force in the next five years.