Why Wall Street Sees Bitcoin Falling Sharply To $10,000

The past few days have been somewhat great for investors as almost all the top 100 crypto assets by market cap surged in value despite the lingering crypto winter aggravated by insolvency troubles at crypto lending platforms Celsius, Voyager Digital, and Vauld. The price of the largest cryptocurrency has shown signs of a steady recovery, climbing above the $20,500 mark.

However, most Wall Street investors believe bitcoin is poised to dive further from the current levels to as low as $10,000, according to a new poll.

Wall Street Believes BTC Could Plunge As Low As $10K

Bitcoin could be primed for a steeper retracement.

According to Bloomberg’s latest MLIV Pulse survey, 60% of the 950 surveyed investors expect bitcoin to post another drop of around 45% to reach $10K. But the remaining 40% think bitcoin could soon go back above the $30,000 important psychological support level.

BTC’s price performance in recent months has mirrored traditional stocks amid surging macroeconomic uncertainty. Since the U.S. Federal Reserve pledged to raise interest rates and enact quantitative tightening measures to tame the skyrocketing inflation, crypto and global markets have suffered from multiple notable sell-offs.

Bitcoin has already shed over 70% from its picotop of $69,044 recorded in November 2021. Speaking to Bloomberg, Tribe Capital’s Jared Madfes noted that “it’s very easy to be fearful right now, not only in crypto but generally in the world,” adding that the expectations for another significant bitcoin retracement reflect “people’s inherent fear in the market.”

28% of the respondents in the MLIV Pulse survey expressed confidence in the future of cryptocurrencies, while at least 20% said cryptos are worthless garbage.

The Worst Is About To Come

If the results of the survey are anything to go by, bitcoin may be on the verge of another nauseating meltdown. The global chief investment officer at Guggenheim Partners, Scott Minerd shares the same opinion. Minerd previously predicted that bitcoin would hit $8,000 before a market bottom is found.

That said, bitcoin’s ability to hold current levels will likely determine its next direction, as relief on the global markets would provide a chance for crypto to recoup some of the losses from the recent months.

Although the odds presently appear to favor the bulls, astute investors remain cautiously optimistic about the prospects of a fully-fledged recovery in the near term.