The recent crypto market decline sent Bitcoin (BTC) trading just above $20,000 as a weak macroeconic environment continue to drag the prices of most asset classes. However, a recently published study reveals that most crypto fund managers remain overwhelmingly bullish with some even predicting that Bitcoin could go as high as $100,000 by yearend.
This was revealed by PricewaterhouseCoopers (PWC), one of the Big Four accounting firms worldwide, in its “4th Annual Global Crypto Hedge Fund Report” last week. The survey involved 77 specialist crypto hedge fund managers with total assets under management (AUM) of $4.1 billion last year.
Just like the previous editions of the report, PWC asked the participating crypto fund managers to give their price predictions for Bitcoin at the end of this year. Surprisingly, managers remain extremely bullish on BTC despite the bearish crypto market at the time of the survey, which was done in April 2022.
All survey participants were convinced that Bitcoin’s price would end up higher by yearend. “All respondents predicted that BTC would end the year above the prevailing price upon survey closure, US$40,000, with the median prediction of BTC price being US$75,000,” PWC said in the report.
In fact, some even predicted that Bitcoin could go as high as $100,000 by the end of 2022. Seventy five percent of the respondents believe that the crypto’s price would rise $50,000 higher.
“The majority of predictions were within the US$75,000 to US$100,000 range (42%), with another 35% predicting the BTC price to be between US$50,000 and US$75,000 by the end of 2022,” the company added.
Most of the respondents believe that the total value of the crypto market, which was around $1.5 trillion when the survey concluded, would end up higher. “Based on responses, fund managers were also bullish towards the crypto market capitalisation changes in the upcoming year, with over 97% of fund managers expecting the market to finish the year significantly above current levels and with the median predicted level at US$3 trillion,” PWC wrote. “Most forecasts ranged between US$2 trillion and US$3 trillion. It is not clear how recent events and changes to market sentiment might impact these estimates.”
However, the study was concluded before the collapse of the Terra ecosystem in May and it is possible that the managers’ outlook might have changed since then due to the impact of the event. “Given time of survey and results which reported that nearly 30% of funds traded UST and 50% had some form of exposure to LUNA, it’s not clear how the events with Terra and the wider market disruptions in May 2022 will have impacted this,” the report noted.