DataTrek Research Shows Bitcoin Price Surge is “Crowd Psychology”, a Herd Mentality
Bitcoin [BTC] has quickly gained momentum, as it sits at a value of USD$8,202 from its low of nearly USD$5,800 – representing an increase of 41 percent since the month of June. As per CoinMarketCap, the total market capitalization sits at approximately USD$300.5 billion.
Since the surge in prices of bitcoin, many were quick to point fingers at a future bitcoin ETF as being the hope for many crypto investors. The speculation was the first piece of positive news for the longest time, as it meant new sources of money coming into the crypto market, which alone will help to stabilize it a little more.
The Co-Founder of DataTrek Research, Nicholas Colas shared the findings of the conducted survey, to which nearly 52 percent believe that the price hike was highly correlated to “crowd psychology” – making it the main factor as well.
In particular, Colas pointed out that “this was the single most surprising response of the whole survey,” adding that “More than half of respondents believe valuation in the crypto space is “purely a function of crowd psychology” is refreshing in its honesty.”
Furthermore, he shared that as little as 15 percent of the respondents believed that the prices had to do with actual usage of the digital asset.
The research also found that many investors were uncomfortable with the concept behind crypto custody, with as high as 38 percent suggesting that cryptos will never be perceived as a global reserve assets.
42 per cent of the respondents’ expertise levels are restricted to traditional money handling industries and 24 percent strictly brokers – with a total of 216 individuals taking part in the survey.
At the time of writing, majority of the tokens were in the green zone with slight growths ranging from 0.7 up to 12 percent. As per Market Watch, bitcoin futures have also been doing quite well, using Cboe as an example to make the point that XBTQ8 gained 1.17 percent.