With the new Bullish move in the BTC markets, many crypto players have been projecting that the asset will reach fresh levels before the end of the year. Analyzing data received from Crypto Parrot, a crypto trading simulator, about 65% of the total 55 cryptocurrency hedge funds project that BTC will trade within $50k and $100K before the year runs out.
The crypto hedge funds responded to a survey, and about 21% of them suggested that the price of BTC at the end of the year will be within $100k and $150k. Despite the crash in the crypto market recently, only 1% of the total respondents projected a BTC trading less than $50k.
The survey, which was conducted in the first quarter of the year by an asset management firm, Elwood, targeted 55 hedge funds to represent roughly 30 percent of the total cryptocurrency hedge funds.
In another part of the report, there are about 63% of the total hedge funds concerned with the survey believe that the market cap of the crypto flagship will rise to about $2 trillion and $5 trillion. Another 21% of the total figure picked between $1 trillion and $2 trillion and 11%, $5 trillion and $10 trillion. A staggering 2% projected $10 trillion and more.
The Possible Reason for the Hedge Funds’ Projections
Many of these hedge funds are still bullish in the BTC market, expecting the digital asset to reach $100,000. At the beginning of the year, BTC established a bull run aiming at a value of around $100,00 amid the massive inflow of institutional investors to the space.
As the market matures, the space is looking more susceptible to more institutions’ investments. The influx of funds from these institutions is believed to propel the market cap of the asset. Also, more institutions will be attracted to the space seeing reduced volatility.
Despite the massive price correction that saw the asset dropped by 50% from the new ATH, there hasn’t been any sign of resilience in the movement of the asset. The asset became more volatile after the Chinese government released new regulations.
The asset, however, has been on a short rally, and it is currently trading at $48,651. The resilience seen with the market momentum despite the derogatory press outlook is a major driver to take new highs.
Furthermore, the use cases of BTC are expected to increase, judging from the perspective of payment gateways. The exposure of the crypto market flagship shoots up after El-Salvador registered itself as the first country to name BTC as a legal tender. Also, there are other Southern American countries expected to follow the El-Salvador trail as the asset is becoming popular for inflation hedge and monetary debasement.
Despite these bullish projections, the fear of an average investor is the uncertainty that comes with crypto regulations. One of the reasons why the BTC has been pinned on the radar is its possibility to use used for money laundering.
It is not worthy of mention that the price of BTC has fallen in the wake of the negative regulatory press releases.