When it comes to faith in Bitcoin, it is often considered that the retail investors lead the path and institutions maintain a cautiousness. However, a new survey conducted by Fundstrat, the Wall Street strategy firm points toward a different conclusion, they concluded that Institutions are more bullish on Bitcoin than individual investors.
Contradicting views regarding Price
It is surprising that the institutions believe that the worst is over for bitcoin. They believe that it has bottomed out and is now set to soar. On the other hand, the retail investors are of the opinion that it is yet to find the ground and will further plummet. Also, individual investors believe that the bear market will last through next year while institutions say bitcoin will end this year in Green.
Mati Greenspan, the senior market analyst at eToro, said:
“Bitcoin was built on the ashes of the financial crisis to provide an alternative to fiat money run by governments and banks. If there was a catalyst that would make people question the role of these institutions then I can see them moving higher”
BTC vs Altcoins
Another interesting observation was the apparent divide between institutions and “Crypto Twitter” in regards to Bitcoin and Altcoins(especially XRP). When asked to predict the best performing token of 2019: 59% the institutions placed their bet on BTC as the best performer. With 18% EOS finished a distant second, followed by Ethereum, NEO, Tron, and stellar. While individual investors placing most of their faith in Ripple.
In case of a Recession
The survey also pointed out other interesting factors. Such as, during a recession, 72 percent of institutions believe cryptocurrencies will rise in price. On Twitter, 59 percent agreed. This, of course, is understandable. We can look at countries such as Venezuela, Argentina with turbulent economies to see the impact crypto can have on people’s lives.
It will be very interesting to see how this plays out if cryptocurrencies continue to be a significant asset class when the next economic downturn hits – those who view Bitcoin and other cryptocurrencies as a store of value similar to gold have a more positive outlook, while those who view cryptocurrencies as primarily a vehicle for speculation say that investors will move out of high-risk assets when the economy is performing poorly.
As of today, Bitcoin is trading for $6590.
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