The cryptocurrency market has entered one of its most challenging phases in recent memory. A new investor sentiment survey reveals growing pessimism, with a majority of respondents predicting that Bitcoin could plunge to $10,000 — a level not seen since 2020. Amid widespread skepticism, nearly a quarter of retail investors now believe that “cryptocurrencies are all garbage,” while confidence in the next bull run being crypto-driven continues to erode.
This deepening sense of fear and uncertainty underscores a broader shift in market psychology — one shaped by macroeconomic pressures, regulatory scrutiny, and high-profile industry failures.
Majority Forecast Bitcoin Drop to $10,000
According to a recent MLIV Pulse survey conducted by Bloomberg, approximately 950 investors were asked about their outlook on Bitcoin. The results paint a grim picture: 60% believe Bitcoin will continue its downward trajectory, with its value more likely to halve to $10,000 than rebound to $30,000.
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Bitcoin peaked at nearly $69,000 in November 2021 but has since lost over two-thirds of its value. While it hasn't traded below $10,000 since September 2020, the mere suggestion that it might return there reflects the severity of current bearish sentiment.
Market analysts point to this forecast as evidence of profound investor pessimism. The crypto ecosystem has faced numerous setbacks — from exchange collapses to regulatory crackdowns — all compounded by rising global interest rates and tightening monetary policies. According to CoinGecko, the total cryptocurrency market cap has shed around $2 trillion since late 2022.
Such losses have not only wiped out retail portfolios but also shaken institutional confidence, leading many to reassess the long-term viability of digital assets.
“Cryptocurrencies Are All Garbage” – 24% of Retail Investors Agree
When asked about their overall perception of cryptocurrencies, sentiment diverged sharply:
- 24% of retail investors said they believe “cryptocurrencies are all garbage,” viewing them as fundamentally worthless.
- In contrast, 23% of retail investors still firmly believe that “cryptocurrencies are the future.”
Among professional investors, opinions were slightly more optimistic:
- Only 18% dismissed crypto as garbage.
- 26% embraced the view that digital currencies represent the future of finance.
Despite this relative openness among professionals, the data highlights a deeply polarized market. There is no consensus on whether blockchain technology will redefine finance or fade into irrelevance.
This split mirrors broader debates about innovation versus speculation. While some see blockchain as a transformative force, others view the entire sector as an overhyped bubble detached from real-world utility.
Fear Spreads Beyond Crypto — Calls for Stronger Regulation Grow
Jared Madfes, co-founder of venture capital firm Tribe Capital, noted that fear is not isolated to crypto markets:
“It’s easy to feel fear right now — not just in crypto, but across the world.”
He added that predictions of further Bitcoin declines reflect an underlying psychological unease rooted in economic instability, geopolitical tensions, and technological uncertainty.
In response, most survey participants agreed that stronger regulation is essential to restore trust and ensure sustainable growth. Clear rules could help separate legitimate projects from scams, protect investors, and provide clarity for businesses operating in the space.
There’s also growing awareness of competition from central bank digital currencies (CBDCs). Many respondents acknowledged that while Bitcoin and Ethereum have disruptive potential, they must contend with government-backed digital currencies that could dominate adoption due to institutional support and legal legitimacy.
NFTs Lose Luster — Only 9% See Them as Investment Opportunities
Once hailed as the next frontier of digital ownership and investment, NFTs (non-fungible tokens) have seen their popularity plummet.
During the 2021–2022 boom, NFTs attracted millions in investments, with digital art pieces selling for hundreds of thousands — even millions — of dollars. Today, however, only 9% of survey respondents consider NFTs a viable investment opportunity.
Most now see them primarily as artistic expressions or status symbols rather than financial assets. This shift marks a significant retreat from earlier enthusiasm and suggests that speculative interest has largely faded.
Ed Moya, senior market analyst at OANDA Corp., observed:
“Bitcoin is still powering much of the crypto narrative, but Ethereum is losing its lead.”
With fewer developers building on Ethereum and declining transaction volumes, even core platforms are feeling the pressure. As innovation slows and user engagement drops, the path to mainstream adoption grows steeper.
Next Bull Market May Bypass Crypto Entirely
Perhaps the most telling finding from the survey is that most investors do not expect the next major bull market to be driven by crypto.
Terms like “Web3,” “metaverse,” and “blockchain” — once buzzwords synonymous with future growth — are now viewed with skepticism. Respondents believe these concepts are unlikely to spark widespread investor enthusiasm or attract massive capital inflows in the near term.
Instead, attention may shift toward artificial intelligence, green energy, biotechnology, or other sectors perceived as having clearer paths to profitability and real-world impact.
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This signals a potential turning point: if crypto fails to demonstrate tangible utility beyond speculation, it risks becoming a niche market rather than a financial revolution.
Frequently Asked Questions (FAQ)
Q: Why are investors so bearish on Bitcoin right now?
A: Investor pessimism stems from multiple factors: prolonged price declines, high-profile bankruptcies (like Celsius and FTX), tighter monetary policy, and lack of clear regulation. These have combined to erode confidence in the short-term outlook for Bitcoin.
Q: Is it possible for Bitcoin to drop to $10,000?
A: While possible during extreme market stress, many analysts consider $10,000 a worst-case scenario. Bitcoin’s network fundamentals — including hash rate and adoption — remain strong compared to previous bear markets.
Q: Are cryptocurrencies still a good long-term investment?
A: Many experts believe so. Despite current volatility, blockchain technology continues to evolve, and institutional interest persists. Long-term holders often cite scarcity (e.g., Bitcoin’s 21 million cap) and decentralization as enduring value drivers.
Q: What would reignite a crypto bull run?
A: Key catalysts could include regulatory clarity, approval of spot Bitcoin ETFs, macroeconomic easing (lower interest rates), or breakthrough applications in DeFi, identity verification, or cross-border payments.
Q: Can NFTs recover their former popularity?
A: A full recovery is uncertain. For NFTs to regain traction, they need to move beyond digital collectibles into practical uses — such as ticketing, certification, or intellectual property rights — where verifiable ownership adds real value.
Q: How can I protect my crypto investments during downturns?
A: Strategies include dollar-cost averaging, diversifying across asset types, using secure wallets (cold storage), avoiding leverage, and staying informed through trusted sources instead of hype-driven media.
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While fear dominates today’s crypto landscape, history shows that periods of extreme pessimism often precede renewed innovation and growth. For those willing to look beyond short-term volatility, the foundation for the next chapter of digital finance may already be taking shape.