A new report shows that institutions hold a more bullish view of Bitcoin (BTC) than retail investors according to a study by Fundstrat.
According to Tom Lee, the managing partner and head of research at Fundstrat Global Advisors, results of a poll that involved 25 institutions and 9,500 Twitter responses showed that Wall Street believed that Bitcoin has bottomed.
Institutions bullish on Bitcoin (BTC)
According to the recent survey, close to 54 percent of the participating institutions showed that they were optimistic about cryptocurrency.
The general view among them was that Bitcoin (BTC)’s decline in 2018 has already seen it drop to its lowest price point.
Fundstrat also indicated that most institutions believe that bitcoin will significantly gain in value in the next 15 months.
The institutions believe that the top digital currency’s price will rise, with 57 percent holding the view that bitcoin can see its price rise to highs of as low as $15,000 to what many call “the moon.”
Retail investors bearish on Bitcoin
The Twitter poll revealed quite the opposite, with most respondents holding the view that the top crypto asset still had plenty of “room to fall.” Only 44 percent believe that the leading cryptocurrency has already bottomed.
In contrast, Twitter users hold a less optimistic view, with just 41 percent forecasting that BTC prices will rise to such heights by the end of 2019.
Retail loves Ripple (XRP), don’t like Tron (TRX)
The Twitter survey included a set of questions regarding altcoins. When asked which coin users thought would perform best over the next 12 months, Ripple (XRP) was overwhelmingly the favorite.
Next, when asked about which coin users believed had an investment thesis that made ‘the least sense’, Tron (TRX) was first by vote count followed closely by Ripple (XRP).
The results of question 6 seem to be counterintuitive to the results of question 5. How can Ripple be expected to outperform Bitcoin, Ethereum, and EOS while having a poor investment thesis? Although the coins in the two questions are different, the results are nonetheless interesting.
Although institutions appear to hold a more bullish view of bitcoin (and possibly cryptocurrency), most of them have been extremely cautious and reluctant to make substantial investment moves. Some of the stumbling blocks have been price volatility and security/regulatory concerns.
But things seem to be changing for the better as more institutions begin to look at crypto as a dependable investment opportunity.
On Monday, October 1, Bloomberg released a report that showed that institutional investors have over time replaced high-net-worth individuals as the largest buyers of digital assets. Most of these big money firms are reportedly buying crypto worth more than $100,000.
An increased injection of high-profile investments has the potential to boost cryptocurrency as a legitimate investment vehicle and could be the catalyst for a price surge akin to the 2017 bitcoin boom that saw BTC rise by over 1,300 percent.
Tom Lee, believes the crypto market will recoup lost value and has thus stuck to his prediction Bitcoin will eventually hit a high of $25,000 in 2018.
He has also come out bullishly about Ethereum (ETH), saying that the token is going to experience a reversal and could reach $1,900 by the end of 2018.
However, another bitcoin bull seems to have revised their view of how high BTC price will rise.
Mike Novogratz, the CEO of cryptocurrency bank Galaxy Digital Capital, had earlier predicted that the leading digital coin would reach $45k by November 2018. But he recently told CNBC that he doesn’t see it crossing the $9k mark this year.
Bitcoin (BTC) currently trades at $6,567 against the US dollar and has a market cap of $113 billion.