Throughout the crypto market’s relatively short 10 year history, retail investors, like you and I, have been the primary advocates for this promising technology. But now, as revealed by Fundstrat, a New York-based leading market analysis firm, financial institutions seem to be “significantly” more bullish than the crypto public.
Institutions: Bitcoin Has Finally Bottomed
On September 30th, Tom Lee, managing director of Fundstrat Global Advisors, released a six-part poll via Twitter that was aimed at the cryptocurrency community. Obviously, many respondents were confused, as it wasn’t made clear why this survey was made and subsequently distributed. All was made clear on October 4th, however, as crypto-friendly Fundstrat released a report highlighting the current state of the crypto market through the lens of both institutions and Crypto Twitter (public).
— Phil⚡️ (@PhilCrypto77) October 4, 2018
According to the detailed report, which stretches out to 12 pages long, there are two primary takeaways. The first and most important statistic is that a majority of institutions (those who participated in Fundstrat’s survey) believe that Bitcoin (BTC) has bottomed, with 54% of these firms backing the well-read sentiment that the foremost crypto asset has likely put in a bottom at $5,800.
The other 46 percent of respondents claimed that Bitcoin is likely to bottom at $4,350 (average) and during March of 2019.
On the other hand, however, Crypto Twitter was comparatively bearish, with 44 percent of the public survey’s respondents ticking the box that read “Bitcoin already bottomed.” But still, a good portion remaining retail investors claim that the crypto market is likely to bottom before year’s end, or by Q1 of 2019 at the latest.
The 25 institutional respondents claimed that BTC, largely dubbed “digital gold,” is likely to reach $8,456 (average) by year’s end and $18,162 (average) by the time the long-awaited 2020 rolls around. Interestingly enough, these forecasts seem rather bullish when compared with the crypto community, yet again, as only 40 percent of the public claimed that Bitcoin will surpass $15,000 by December 31st, 2019.
This came as a surprise to many, as crypto social media channels have become defined for their undying bullish sentiment and irrational ‘moon’ calls/predictions. But still, the public’s hesitancy to claim that BTC is ready to surge indicates that some form of rationality may have returned to the ever-volatile crypto market.
Hate Towards XRP Is A “Contrarian Buy” Indicator
The second takeaway is the fact that XRP, the native digital asset of the Ripple ecosystem, is both neither understood and liked by members of both the institutional and retail investor pool. It was explained that this is due to the fact that the crypto asset is centralized, holds close ties to Ripple, and is widely misunderstood and doesn’t make much sense from an investment standpoint.
However, it was explained that this may be a “contrarian buy” indicator, which means that XRP could actually be a good hold in spite of the rather negative public sentiment surrounding the crypto asset.
Photo by Cold Storage Coins on Unsplash