New Survey Predicts a Higher Likelihood of Bitcoin Hitting $10k

Although the crypto market has made steady gains over the past week, and investors believe there could be a recovery, many Wall Street participants believe the crypto winter isn’t over yet.

Based on a recent survey, most Wall Street insiders still expect a market downturn that could see many top coins, especially Bitcoin, lose most of their value.

Market Wipeout Breeds Widespread Scepticism Regarding Bitcoin

In the early hours of today, Bloomberg shared a survey report taken from MLIV Pulse. 950 investors answered if they believed Bitcoin would hit $10,000 or $30,000 first. The report confirmed that 60% of investors believe that Bitcoin is headed to $10,000 instead of $30,000.

The survey report revealed widespread scepticism concerning the market, especially following a rough few weeks in which the entire market fell from $2 trillion to about $900 billion. As Bloomberg reported, only 28% of the respondents still believe that cryptocurrencies are the future of finance. 20% of them claimed that cryptocurrencies are essentially worthless.

Bitcoin isn’t the only asset investors have bashed. Ethereum, the best Bitcoin alternative, saw an impressive gain last week following the implementation of the Sepolia testnet – another step in the blockchain’s transition to the proof-of-stake (PoS) model. However, even that bullish news could not prevent ETH from sliding over the weekend.

Pointing out some concerning metrics, market analyst Crypto Feras posted that although ETH had accumulated gains over the week, the asset’s failure to break the $1,300 mark was an alarming trend.

$ETH #ETH update
keeping an eye on $ETHUSD cuz it's giving more clarity than $btc atm

PA is still showing clean rejection of the range-high
potential bull-flag being formed (not enough yet)https://t.co/IzA7x11G4o

if we continue bleeding below flag support, 1020$ is coming✍️🏻 https://t.co/1aqMA2tP4z pic.twitter.com/XB2RepRGt9

— Crypto Feras  (Won't DM u first) (@FeraSY1) July 10, 2022

As the analyst explained, ETH’s continued bleeding could see the asset fall back to the $1,020 mark. At press time, investors can buy Ethereum at $1,143.

New Fears as Week 3 Begins

Regardless, there is undoubtedly a lot to look forward to this week. The crypto market correlates with the US economy now, so developments in the latter are likely to affect the former. One of the primary reasons for last week’s gains was a surge in the stock market, which was driven partly by the jobs report from the National Bureau of Labor Statistics.

As the Bureau revealed, the US government added 372,000 jobs in June – much more than the expected peg of 250,000. Although unemployment remains at 3.6%, the jobs market has managed to defy inflation fears. The stock market responded positively to this, as did the crypto market.

However, the inflation figures will be the focus this week. June’s Consumer Price Index (CPI) report will be released on Wednesday, and analysts expect the monthly figure to surge year on year. Increased inflation – especially as it diverges more from expectations – will be a likelier cause of volatility in the market.

Market analyst, Alex Krueger, predicted that the inflation data would be “messy”. Kreuger said the consensus is that the figures could be as high as 8.8% year-on-year and 1.1% month-on-month. Personally, Krueger expects the inflation peg to be much higher than this.

Themes this week

#1 CPI Inflation. Consensus is higher: 8.8% yoy, 1.1% mom. My view: comes in even higher, large dip gets bought.

#2 Earnings. Mostly financials this week. Should be OK.

#3 European gas crisis. Exerts downwards pressure on risk and the euro.

Going to be messy. https://t.co/LCmt2GRcHl

— Alex Krüger (@krugermacro) July 10, 2022

A drop in Asian stocks is also causing investors to worry. Last week, reports surfaced that social unrest had been rampant in China, with protesters taking to the streets to demand the release of frozen funds amid a scandal involving top banking officials and local authorities who abused data from government-backed COVID-19 tracking applications.

Coupled with the assassination of former Japanese Prime Minister Shinzo Abe, Asian stocks appear to be taking quite the hit.

Buy Crypto at eToro from just $50 Now!