Bitcoin Suffers from Continued Bearish Investor Sentiment

The price of Bitcoin (^BTCUSD) today is down by -2.68% at $20,409.  Bitcoin is down -56% on a year-to-date basis.  Ethereum (^ETHUSD) today is down -3.17%.  

Bitcoin is lower today on the general risk-off mood, with the Nasdaq 100 index down -2% and with many high-profile tech stocks trading sharply lower. 

Bitcoin is also lower after today’s survey news of bearish crypto sentiment among Wall Street investors.  A survey released today by Bloomberg’s MLIV Pulse found that 60% of Wall Street investors surveyed believe a 50% drop in Bitcoin to $10,000 is more likely than a rally to $30,000.

The survey showed a continued polarization of investor sentiment toward cryptocurrencies.  The MLIV Pulse survey found that about 50% of investors are skeptical about cryptocurrencies, with 18% agreeing with the statement “They are all garbage” and 32% having the view of “Open-minded but skeptical.” 

The survey found that 23% of investors survey said they are “Skeptical but involved anyway.”  True crypto believers accounted for only 28% of the survey respondents, with 2% considering themselves “Bitcoin maximalists” and 26% agreeing that “Cryptocurrencies are the future.”

This year’s rout in cryptocurrencies has slashed the value of the sector to around $1 trillion from its peak of about $3 trillion.  Despite the $2 trillion loss in the crypto sector, Fed Vice Chair Lael Brainard said today that the rout in cryptocurrencies does not pose a “system risk” to the U.S. financial system.  However, she did say that she favors regulation for the crypto market to reduce the risk of systemic risk and the risk to individual investors.

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