Levels of consumer trust in crypto increasing: Report

Consumer trust in cryptocurrencies, notably Bitcoin, sees an uptick according to a recent Deutsche Bank survey, signaling evolving sentiments amid lingering concerns over price volatility.

A new Deutsche Bank survey revealed that consumer skepticism about Bitcoin has fallen slightly, although less than a third of survey respondents still expect a sharp price drop by the end of 2024.

The survey, published on April 8, polled over 3,600 consumers. Slightly more than half (52%) agree that cryptocurrencies as a whole will be an “important asset class and method of payment transactions” in the future.

A similar survey was conducted by Deutsche Bank in September 2023, which showed less than 40% confidence.

The amount of respondents who consider crypto to just be a “fad that will eventually fade” has now dropped to less than 1%, according to the survey.

The survey also looked at the price of Bitcoin (BTC) in light of the upcoming halving. Deutsche Bank analysts said they expect the price to be supported by regulation, central bank rate cuts and anticipation of a spot Ethereum exchange-traded fund (ETF) approval from the United States Securities and Exchange Commission (SEC).

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A third of the survey participants said they expect Bitcoin to dip below the $20,000 price point by the end of 2024. This figure compares to 35% in February and 36% in January.

However, only 10% expect Bitcoin to surpass $75,000 by year-end.

This survey comes after much activity surrounding Bitcoin since the beginning of 2024. In January, the SEC approved the first U.S.-based spot Bitcoin ETFs, which pulled in a record $1 billion daily net inflow on March 12. 

In mid-March, the cryptocurrency hit a new $73,794 all-time high and is anticipated to spike even further, with some estimates as high as a 160% increase after the halving, which means it could hit the $150,000 mark, according to some analysts.

The halving is anticipated to occur in mid-April, with many predictions settling on April 20. This event is causing some analysts to take a bullish stance on the cryptocurrency for the year ahead, citing the heightened overall demand and other macroeconomic factors driving the price.