LONDON - Consumers are becoming slightly less sceptical about Bitcoin, a Deutsche Bank survey published on April 8 showed, although just under a third of those questioned still expect its price to drop sharply by the end of 2024.

Why survey is important

Although people have poured billions of dollars into Bitcoin, hoping for returns if its price rises, top regulators have said it has no inherent value and presents risks.

By the numbers

Deutsche Bank said it surveyed more than 3,600 consumers, with 52 per cent of respondents saying cryptocurrencies will be an “important asset class and method of payment transactions” in future. Less than 40 per cent said that when surveyed in September 2023.

A third of US respondents expect Bitcoin to drop below US$20,000 by the end of 2024. This group is getting slightly smaller. It was 35 per cent in February and 36 per cent in January.

The number of people who think cryptocurrencies are “just a fad that will eventually fade” dropped to less than 1 per cent.

Still, only 10 per cent of respondents expect Bitcoin to be above US$75,000 by the end of the year.

Bitcoin hit a three-week high on April 8. It reached an all-time high of US$73,803.25 in March, recovering from a dramatic plunge in 2022.

The recent revival is due to excitement about spot Bitcoin exchange-traded funds and expectations of interest rate cuts, analysts say.

What’s next

Some analysts see Bitcoin’s recent recovery above US$70,000 as a sign that investors are shrugging off the warnings.

Deutsche Bank analysts said expect Bitcoin’s price to be supported by the upcoming “Bitcoin halving”, as well as by regulation, central bank rate cuts, and expectations that the US Securities and Exchange Commission will approve spot Ethereum ETFs. REUTERS