Thomas Lee, managing partner and head of research at Fundstrat Global Advisors, compared results from 25 institutions he surveyed at a dinner with Twitter results from 9,500 respondents. The results of the survey are ironic and could possibly mark a new era in the crypto space.
Fifty-four percent of the institutions polled were bullish and indicated that Bitcoin’s price woes are over. On crypto Twitterverse, it was a different story. Forty-four percent of Twitter respondents said that the world’s first cryptocurrency had seen its worst.
Fifty-seven percent of the surveyed institutions responded that Bitcoin’s price would trade upward of $15,000 in 2019, while only 40 percent of Twitter users shared the same sentiments.
The Irony and Relevance of the Poll Results
For the past decade, cryptocurrencies, led by Bitcoin, created a “shadow Wall Street” fueled by retail and inexperienced investors who were ever bullish on Bitcoin. In part, Bitcoin’s meteoric rise in 2017 was driven by hype and FOMO (fear of missing out).
Since the beginning of the year, regulators stepped in to control the market that thrived on speculation and threatened the financial balance. The regulation caused the price of Bitcoin to decline sharply. The entire market shed off more than $500 billion since Jan. 7.
Other investors entered the market in December and purchased Bitcoin at its peak point, believing that it would soar even higher. At the beginning of the year, financial analysts predicted that Bitcoin’s price would reach $100,000 in 2020.
However, 2018 is a complete opposite. The market is in its correction phase, and even some of Bitcoin’s most bullish analysts are toning down their optimistic predictions. Mike Novogratz, chief executive of Galaxy Digital Capital Management, previously said that Bitcoin’s price would hit $45,000 by November this year. He now thinks that Bitcoin may not even reach $9,000 by year-end.
Speculators Paving the Way for Institutional Investors
Some of the retail investors have exited the game because the industry is maturing and the possibility of making 1,000x returns per year are diminishing.
The results are also an indication that reality is sinking in. The crypto market is moving from being a Wild West into a new regulated market. The hype has subsided.
Institutional investors, who are traditionally known for being cautious, are bullish partly because of the regulatory measures being taken. They played the wait-and-see game and are now taking cautious but concrete steps into the market.
Recently, Ric Edelman, founder of Capital Investments, said that money managers need to start educating themselves about the new industry. He further stated that a Bitcoin ETF would be approved in the future.
These developments, among others, could prove that at some point institutional investors will dominate the crypto market as much as they have dominated any other financial market.
New Ironic Survey Results: Wall Street Bullish About Bitcoin, Twitter Users Think Otherwise was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.