Bitcoin: Deutsche Bank Survey Signals Potential Price Drop Below $20,000 by 2025
Deutsche Bank Research's recent analysis reveals a cautious investor sentiment, with over 33% anticipating Bitcoin to fall below $20,000 by January 2025.
Bitcoin’s recent 20% decline to under $39,000 from its peak, along with a survey of 2,000 participants from the US, UK, and Eurozone, underscores concerns in the cryptocurrency market. Despite pessimism, 15% foresee a potential recovery, projecting Bitcoin to reach $40,000 to $75,000 by year-end.
The surge to $49,000 on January 11, driven by excitement over new spot Bitcoin ETFs, was followed by sell-offs, currently placing Bitcoin around $40,000. Deutsche Bank analysts highlight the role of these ETFs in institutionalizing Bitcoin, but note most inflows are from retail investors.
The investment landscape sees $4 billion entering new spot Bitcoin ETFs, primarily managed by BlackRock and Fidelity, counterbalanced by a $2.8 billion withdrawal from Grayscale. JPMorgan analysts caution against overly optimistic expectations for Bitcoin ETFs.
READ MORE: Bitcoin: Analyst Predicts Correction Amidst Historical Market Patterns
Examining historical patterns, Bitcoin’s cyclical nature is evident in a 25% retracement pre-halving in 2016. Past cycles indicate a bull market peak the year following a halving, suggesting a potential peak in 2025. The market trajectory resembles the 2019 fractal, hinting at a 2024 Q1 downturn amid pre-halving hype and spot Bitcoin ETF approval.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
