A survey conducted by PwC revealed that most hedge funds are still bullish despite Bitcoin’s current price actions.
The PwC Hedge Fund Survey
The survey was carried out in April this year, and all respondents admitted that they expected Bitcoin to close above $40K at the end of 2022. Notably, 42% of respondents expected Bitcoin to end the year between $75,000 and $100,000. About 35% of the respondents had a more conservative prediction, tipping Bitcoin to finish the year between $50,000 and $75,000.
The survey also captured the predictions of hedge fund managers on the total crypto market cap. Most of the respondents were bullish and revealed that they expect the market to finish above the $1.3 trillion cap by the end of 2022. Most of the predictions ranged between $2 trillion and $3 trillion, with a few managers tipping the crypto market to soar above $5 trillion by the end of the year.
What the Crypto Market Reveals
Since the survey was conducted in April, it’s been dump after dump for Bitcoin and other cryptocurrencies. The total crypto market cap currently sits just above $1 trillion, its lowest value in over a year. In the last 24 hours, Bitcoin has lost 13% of its value and trades at around $23K.
Ether has also lost 15% of its value, with a current market capitalization of $150 billion, according to Coinlore. Most altcoins are down by 10% or more in the last 24 hours, and leading alts like Dogecoin and Solana have lost over 30% value in the past week.
The terrible condition of crypto markets does not necessarily mean investors are doomed. Hedge Funds and veteran traders know recoveries always follow price crashes.
However, there is no guarantee that Bitcoin will finish the year between $75K and $100K. Notably, though, Bitcoin will have to increase by more than 3x to reach the $75,000 milestone.