By James Fattal
Investing.com -- 73% of investors plan on investing in cryptocurrencies over the final months of 2021, according to a new survey of U.S. crypto investors.
According to the survey of 1,421 respondents, 79% believe Bitcoin will hit a new record value exceeding $70,000 by the end of this year, while 21% believe it has already reached its ceiling for 2021.
Looking ahead, 44% see Bitcoin reaching $70,000 - $100,000 in 2022, with 40% predicting a value above $100,000 and 16% stating that the cryptocurrency will not reach the highs of 2021.
“A new generation of investors, which entered the market after the rise of commission-free trading during the pandemic, is turning the crypto space on its head,” said Jesse Cohen, senior analyst at Investing.com.
“They're much more likely to invest in risky cryptocurrencies than the older generation and they're doing their own research on platforms like Twitter, Reddit and TikTok, instead of paying attention to the Wall Street experts.”
The strong interest in digital currency comes even though 17% of investors admit to having “no idea” what the blockchain system is - a trend even greater among Gen Z’s, with 1 in 3 of these younger investors admitting to having no understanding of the technology.
58% plan to invest in Ethereum, exceeding the 43% who anticipate investing in the best-known cryptocurrency, Bitcoin. 35% plan to invest in the Shiba Inu coin, which following astronomical gains over a 15-month period recently plunged by 50%.
“Many crypto investors have turned more bullish on Ethereum over the past year thanks to its increased involvement in DeFI projects and NFTs. With the price still below the $5,000-level, many expect ETH to double its price in 2022,” Cohen added.
“That said, Bitcoin is showing no signs of slowing down with mainstream adoption likely to gain further momentum in the year ahead. The flush of ultra-cheap money being pumped into the global financial system by the Federal Reserve and growing fears of inflation will continue to drive money into the crypto space in 2022.”
28% of investors say they fully trust Bitcoin and other cryptocurrencies, while 20% do not trust them at all, and 4% believe they are a scam.
New regulatory restrictions represent the biggest problem of cryptocurrencies, according to 40% of investors. A pullback leading to a big selloff (19%) and competition from central banks (15%) are the two next-largest concerns in the eyes of investors.
The November poll was conducted online and gathered responses from 1,421 U.S. investors.