editorial
According to a recent study conducted by London-based Nickel Digital Asset Management, institutional investors have expressed confidence in the sustained performance of Bitcoin and Ethereum for the remainder of this year. Nickel Digital, established by former Bankers Trust, Goldman Sachs, and JPMorgan professionals, is Europe’s regulated digital assets hedge fund manager.
The study involved institutional investors and wealth managers from several countries, including the United States, United Kingdom, Germany, Switzerland, Singapore, Brazil, and the United Arab Emirates. Together, these investors manage approximately $3.5 trillion in assets. The research revealed that 97% of respondents believe that Bitcoin’s price will surpass its current levels by the end of the year, while 99% expect Ethereum to experience continuous price growth.
This optimistic outlook is not limited to the short-term. The study found that 78% of respondents believe that Bitcoin’s value will reach an impressive $100,000, with 57% predicting this milestone within the next five years. The study was conducted when Bitcoin was valued at around $30,000 and Ethereum at approximately $1,900.
Looking at the potential downside, a mere 3% of investors believe that Bitcoin will finish the year below $30,000, and only 1% anticipate a decline in Ethereum’s price for the rest of this year. The strong performance of these cryptocurrencies is expected to bolster demand for alternative coins, further solidifying confidence in the digital assets sector. In fact, 89% of those surveyed believe that the growth of Bitcoin and Ethereum will drive demand for altcoins.
When it comes to the potential impact of a Bitcoin Spot ETF launch, approximately 64% of institutional investors interviewed believe that it would affect Bitcoin’s price, with 20% expecting a significant impact.
Anatoly Crachilov, the CEO and Founding Partner at Nickel Digital, commented on the findings, stating, “Bitcoin and Ethereum have consistently delivered strong performances this year. Institutional investors anticipate this growth to continue throughout the remainder of the year. While short-term price predictions can be influenced by market shocks, long-term confidence in the market remains high, with many investors believing that Bitcoin will eventually reach the long-awaited $100,000 valuation. There is particularly bullish sentiment towards Ethereum, with 99% of respondents expecting it to end the year above its current level of $1,900.”
To conduct this research, Nickel Digital enlisted the services of market research firm Pureprofile, which conducted interviews with 200 institutional investors and wealth managers across the aforementioned countries in July 2023.
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