By James Fattal
Seventy-eight percent of investors plan on investing in cryptocurrencies over the final months of 2021, uk.Investing.com has revealed today in newly released data. According to the survey of 1,118 respondents in the UK, 74 percent believe Bitcoin will hit a new record value exceeding $70,000 by the end of this year, while just 26 percent believe it has already reached its ceiling for 2021.
Looking ahead, 37 percent see Bitcoin reaching $70,000 - $100,000 in 2022, with 44 percent predicting a value above $100,000 and 19 percent stating that the cryptocurrency will not reach the highs of 2021.
“A new generation of investors, which entered the market after the rise of commission-free trading during the pandemic, is turning the crypto space on its head,” said Jesse Cohen, senior analyst at uk.Investing.com. “They're much more likely to invest in risky cryptocurrencies than the older generation and they're doing their own research on platforms like Twitter, Reddit and TikTok, instead of paying attention to the Wall Street experts.”
The strong interest in digital currencies comes despite the fact that 16 percent of investors admit to having “no idea” what the blockchain system is — a trend even greater among Gen Z’s, with 1 in 3 of these younger investors admitting to having no understanding of the technology.
Fifty-two percent plan to invest in Ethereum, notably exceeding the 48 percent who anticipate investing in the best-known cryptocurrency, Bitcoin. Thirty-five percent plan to invest in the Shiba Inu coin, following astronomical gains over a 15-month period, although the coin has recently plunged by around 40 percent.
“Many crypto investors have turned more bullish on Ethereum over the past year thanks to its increased involvement in DeFi projects and NFTs. With the price still below the $5,000-level, many expect ETH to double its price in 2022,” Cohen added. “That said, Bitcoin is showing no signs of slowing down with mainstream adoption likely to gain further momentum in the year ahead. The flush of ultra-cheap money being pumped into the global financial system by the Federal Reserve and growing fears of inflation will continue to drive money into the crypto space in 2022.”
Thirty-one percent of investors say they fully trust Bitcoin and other cryptocurrencies, while 21 percent do not trust them at all, and 6 percent believe they are a scam. New regulatory restrictions represent the biggest problem of cryptocurrencies, according to 44 percent of investors. A pullback leading to a big selloff (22 percent) and competition from central banks (15 percent) are the two next-largest concerns in the eyes of investors.
The November poll was conducted online and gathered responses from 1,118 UK investors.