A recent survey from data sources provided by Crypto Parrot reveals positive market sentiment for Bitcoin. Crypto Parrot is a dedicated virtual currency investment simulator. The survey asked 55 hedge fund managers about their take on the future price movement for the flagship cryptocurrency. The results show that more than 65% of the institutions believe that Bitcoin is on a bullish streak.
The survey also reveals that the price of Bitcoin is going to be somewhere between $50K and $100,000 before the year ends. The main source provider of the survey is Elwood Asset Management. The duration of the survey was the Q1 of the current year. As per the Elwood representation, 55 hedge funds make up for 30% of the whole crypto-based funds.
Major Reason Behind Bullish Sentiment of Hedge Funds Towards Bitcoin
Some institutional investors believe that the Bitcoin market cap is going to have an evaluation of 1 to 5 trillion USD, and it makes up for 63% of the hedge funds participants. In comparison, only 21% believe that the market cap will remain inside 1 to 2 trillion USD before year-end. A smaller percentage, only 11%, of these hedge funds voted for 5 to 10 trillion USD market cap possibility for Bitcoin.
Due to the current short-term rally of Bitcoin that saw the per-unit price going from $30K to $50K, many investors have turned bullish on the flagship cryptocurrency. This behavior shows the resilience of Bitcoin as a store of value. Another important factor for positive sentiment towards the beacon coin is El Salvador planning to adopt Bitcoin as a legal tender. Following the example of the South American nation, many other Latin-American countries are coming forward with their crypto market plans.
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The biggest obstacle for the Bitcoin market growth is the constant fear of regulations from the federal authorities. Thus far, the Securities and Exchange Commission of the United States has not greenlit any Bitcoin-based ETFs in the region. On the other hand, no government officials have come forward with a proper legal qualification for virtual currencies.
A recent bill passed in Congress is also threatening to exclude many crypto brokers as legitimate service providers due to stringent criteria. SEC is also prosecuting companies like Ripple Labs that have gone on to trade altcoins. As per the federal watchdog, no evidence of a distinction between Bitcoin, Ethereum, and XRP has been presented in the court thus far.
