Bitcoin received another hefty beating on Wednesday as its price inched closer to the $20,000 mark. Since then, the BTC price has risen alongside other cryptocurrencies as the US central bank announced its largest interest rate increase in three decades.
Despite the chaos, a recently published research finds that the majority of crypto fund managers remain bullish, with some projecting that Bitcoin may still reach $100,000 by the end of the year.
According to a study conducted by financial services firm PricewaterhouseCoopers (PWC), majority of crypto fund managers surveyed believe that the world’s most sought-after crypto asset can still extricate itself out of the pit and reach a value of between $75K and $100K by the end of this year.
The “4th Annual Global Crypto Hedge Fund Report” is based on an April survey of 77 specialist crypto hedge fund managers, according to PWC, which also noted that their total assets under management (AUM) surpassed $4 billion last year.
As with earlier versions of the survey, PWC – one of the world’s Big Four accounting firms – asked respondents to forecast Bitcoin’s price at the end of 2022. Despite the negative cryptocurrency market at the time of the study, hedge fund managers remain surprisingly enthusiastic on the crypto.
“We gave crypto fund managers the opportunity to contribute their estimates on where the price of BTC and the overall cryptocurrency market capitalization would be on Dec. 31, 2022,” PWC said.
The plurality of estimates (42 percent) pegged Bitcoin’s price between $75,000 and $100,000 by the end of 2022, while another 35 percent placed it between $50,000 and $75,000 by the end of this year.
The majority of respondents believe that the total value of the crypto market, which was approximately $1.5 trillion at the conclusion of the study, will end up being higher.
John Garvey, leader of global financial services for PWC in the United States, stated that the recent collapse of Terra clearly illustrated the inherent hazards associated with digital assets. “The market will continue to have volatility, but it is maturing,” he said.
Meanwhile, in addition to the enormous development of cryptocurrency hedge funds over the previous year, the research highlighted bitcoin’s continued dominance within both cryptocurrency hedge funds and more traditional funds.