‘Deep bullishness’ for crypto: Analyst comments on Deutsche Bank report

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As an unexpected but welcome source of hope during the turmoil in the cryptocurrency market, Deutsche Bank’s Future of Crypto Report sheds light on potential bullish crypto activity.

The study criticizing the report notes that it is unlikely that traders or investors would be different from cryptocurrency stocks in a bear market condition.

Marion Laboure, director of macro strategy at Deutsche Bank, told Cointelegraph:

“It is interesting to note the deep bullishness of cryptocurrencies. Even in a very bear market for cryptocurrencies, where the value should drop by 80%, less than half of investors say they will reduce investments or leave the market.
In early December 2021, DB surveyed 3,250 US consumers, 680 of whom use cryptocurrency. The survey must be representative of the United States population and cover different races, ages, incomes, regions, races, and ethnic groups.

In the report, the conclusions were divided into three groups: traders, investors and participants in transactions. Most of them were investors: 80% of respondents admitted to having invested in cryptocurrencies in the past six months.

Even in the extremely bear market for cryptocurrencies, less than half of traders (representing more than 35% of respondents) said they would cut back. In addition, more than 70% plan to increase cryptocurrency activity (significantly or slightly) over the next six months.

Remember that Deutsche Bank released the report in December, and while months can seem like years in the crypto industry, the report notes that “very few crypto bears are active in the space.”

Labor has spoken out in favor of cryptocurrencies, explaining that while volatility is a foregone conclusion, “it could be the digital gold of the 21st century.” Her employer agrees. Last March, Deutsche Bank said bitcoin (BTC) was “too important to ignore”.

Related: Credit Suisse data leak exposes decades of customers and suspicious activities

Finally, as evidence that the get-rich-quick sentiment is waning, the survey also found that “only a small percentage of investors believe that cryptocurrency is the golden ticket.”

Instead, it is possible that merchants will simply switch to non-fungible tokens, as speculation and euphoria prevailed in 2021.

Source: CoinTelegraph

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