Retail Investors' Sentiment Towards Cryptocurrency Improves: Deutsche Bank

Deutsche Bank's latest survey suggests an increase in a rise in positive sentiment towards cryptocurrencies among retail investors in the first quarter of 2024.

What Happened: The survey conducted by Deutsche Bank in March revealed that less than 1% of consumers view cryptocurrencies as a passing trend, as reported by CoinDesk.

This shift in sentiment coincides with a strong rally in the crypto markets, bolstered by the approval of spot Bitcoin ETFs in January 2024.

While the survey indicates an improvement in sentiment, retail investors are not overly optimistic about Bitcoin‘s BTC/USD future. Only 10% of respondents anticipate Bitcoin to surpass $75,000 by the end of the year, with around a third predicting it to fall below $20,000. Additionally, over half of the respondents expressed concerns about the potential collapse of a major cryptocurrency within the next two years.

Despite these reservations, 40% of respondents believe Bitcoin will thrive in the coming years, while 38% think it will disappear. The report also noted that a significant majority of U.S. consumers view cryptocurrencies as commodities, alternative assets, and a store of value, with 65% considering it a potential replacement for cash.

Also Read: Bitcoin Down 4% But Crypto Has Not ‘Reached The Cycle Top,’ Trader Points Out

Why It Matters: The shifting sentiment towards cryptocurrencies comes during amid a broadly positive outlook for the cryptocurrency market.

While Bitcoin is down 4.1% on the day, 96% of Bitcoin holders are in profit while 4% are at breakeven.

Meanwhile, large holder concentration stands at 11%. In the past 24 hours, large transaction volume decreased by 16.1%. Daily active addresses stand at 902,500.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo: Shutterstock

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