CoinGecko Survey Reveals 49% of Crypto Enthusiasts Are Bullish on Market Outlook

CoinGeck surveyed 2,258 participants between June 25 and July 8 to get their opinions about recent crypto market conditions. The survey shows that half of crypto investors are bullish on the market.

Moreover, 94% of the survey respondents hold cryptocurrency or work in the sector, while 49.3% were either bullish or slightly optimistic about the current crypto market outlook.

The other survey participants were bearish, partially bearish, and neutral investors.

CoinGecko Survey Reveals Mixed Sentiment among Crypto Enthusiasts

The survey showed four types of participants: investors, builders, traders, and spectators. The spectators were quite bearish in their response, with two out of every five embracing a bearish outlook.

CoinGecko’s research analyst, Lim Yu Qian, said the market’s neutral sentiment likely reflects market uncertainty.

Qian also believes the respondents are waiting for further developments before forming an opinion on the market outlook. Long-term crypto investors were the most bullish, followed by those working in the crypto sector.

Further, 39.0% of the crypto traders in the survey were bullish, while 33.5% were bearish. This observation confirms that short-term holders might adjust their market sentiment based on price action.

Notably, this survey comes when market leader Bitcoin has lost almost 10% of its value since the April 20 halving. Moreover, the token has declined over 27% from its recent all-time high of $73,750. 

This decline has instilled fear and doubt amongst investors who anticipated a sustained bull run following the halving. 

Bitcoin’s struggles increased following news of defunct crypto exchange Mt. Gox’s proposed repayments. Also, Germany’s massive sales of Bitcoin over the past two weeks contributed to the selling pressure. Bitcoin trades at $58,000, with a slight recovery in the past 24 hours. 

Crypto Investors Vary on Predictions for Crypto Market 

Despite the bearish market outlook, analysts remain optimistic about a potential recovery. In a recent X post, Analyst RookieXBT said the market will regain a bullish outlook when Germany sells three-quarters of their BTC tokens.

bullishness to return when Germany about 3/4 finished selling their coins imo

mtgox is scary but it’s not like you can explicitly tell onchain what’s being sold the way you can with the Germany coins (i don’t think) – makes things less dramatic

ethereum ETF – we’ve sold the…

— RookieXBT 🧲 (@RookieXBT) July 8, 2024

He believes the sales will not significantly impact the market since they are not displayed on-chain. RookieXBT also noted that the Ethereum ETF hype could boost the market since a rally is the next possible direction. 

Further, the analyst commented on FTX’s plans to distribute $15 billion in fiat to its creditors. He foresees FTX creditors reinvesting their cash in crypto due to fear of missing out. These creditors might be eager to take advantage of the price slump before the rally.

Additionally, inflation rate cuts, the stock markets, and Donald Trump winning the US Presidency could trigger a recovery. Meanwhile, financial analyst Jacob King shared a pessimistic outlook on Bitcoin and crypto asset recovery chances. 

King believed the German government was not just selling the seized BTC for profit. Instead, the BTC sales are a test to evaluate the financial stability and security of the digital asset. He noted that the Germans are testing how much actual demand there is for Bitcoin, which is unfortunately low. 

Due to this low demand, BTC dropped nearly 25% when sales barely began. Also, 48% of BTC orders in the market face rejection due to insufficient buyers.

King believes Bitcoin has failed this critical test, which is no surprise since fraudulent Chinese exchanges hype BTC. However, note that some of these scenarios and predictions are speculative and might not factor in the general market volatility.