Fundstrat Investor Survey Concludes Bitcoin would Boom During a Global Recession
Fundstrat Survey Says Investors Believe Cryptocurrencies Would Rise During a Recession
During recession growth rates start to fall all over the world. In order to be considered a recession, it needs to have two consecutive quarters of falling GDP. When this happens, stock prices decline. But until now, there is no information about what could happen with cryptocurrencies in a global recession.
However, according to a survey conducted by Fundstrat Global Advisors, 73% of institutional investors said that they believe cryptocurrencies will rise during a recession. A similar result was shown in an interview on Twitter. According to it, 59% of the users that voted agree with that statement.
The number of institutions answering the survey was 25, while on Twitter, 5,382 accounts selected an option regarding what would happen with cryptocurrencies during a recession.
It is important to mention that Fundstrat Global Advisors is a company that is very bullish about virtual currencies as a whole. In general, Thomas Lee, co-founder of the company, has predicted Bitcoin’s price increases in several occasions during this year. Nonetheless, Bitcoin remained operating stable in the last months and weeks. Additionally, 25 companies is not a large number to englobe institutional investors.
Thomas Lee has also performed other polls on Twitter. The first one asked users what they think that is the most important macro factor that influences cryptocurrency prices. 35 per cent of the users answered that central banks play an important role at the time of determining cryptocurrency prices, more than emerging markets, the US dollar or geopolitical tension.
In the third poll, he asked users when they think Bitcoin will bottom. 44% of the respondents said that Bitcoin has already bottomed and 24% answered that the most important cryptocurrency will do it before the end of the current year. 18% and 14% answered that Bitcoin will bottom by March 2019 and after mid-2019 respectively.
The next poll was related to the Bitcoin price. He asked Twitter users where Bitcoin’s price will be in 2019. 40% answered that it would be higher than $15,000 dollars, 26% that it will be between $10,000 and $15,000, 20% between $7,000 and $10,000 and 14% below $6,999 dollars.
The last two polls were related to specific cryptocurrencies in the market. He asked which token will be the best performing in the next 12 months. 46% answered that it will be XRP, 8% answered EOS, 15% selected Ethereum and 31% decided to choose Bitcoin.
Finally, he asked which token ‘investment thesis’ make the least sense. 32% answered TRON, 31% XRP, 20% ETC and 17% Bitcoin.
Digital currencies appeared back in 2008 with Bitcoin (BTC) as the most important one. Since that moment, the growth in the space has been incredible. Now there are more than 2,000 different cryptocurrencies in the market available for investors.
Mati Greenspan, a senior market analyst at eToro, said that a rally during a recession is not so clear. However, he explained that he sees why investors would decide to buy virtual currencies in such a situation. Cryptocurrencies were created right after the 2008 crisis in order to avoid traditional financial institutions and banks.
On the matter, he said:
“However, I do see why investors think that. Bitcoin was built on the ashes of the financial crisis to provide an alternative to fiat money run by governments and banks. If there was a catalyst that would make people question the role of these institutions then I can see them moving higher.”
It is just a matter of time before we see what will happen with cryptocurrencies during a recession. Some analysts believe that in the coming years there will be a new global crisis due to different reasons. Bitcoin and cryptocurrencies could play an important role in this situation.