Confidence in Bitcoin and Ethereum’s ongoing strength is fuelling broader interest in altcoins and other digital assets, according to research by London-based Nickel Digital Asset Management.
About 83% of institutional investors and wealth managers anticipate that the recent surge in the performance of two cryptocurrencies will drive demand for other digital assets. This insight was drawn from the study involving investors from the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates, collectively overseeing approximately $815 billion in assets.
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About 72% of respondents are confident that Bitcoin will surpass the $100,000 mark, while 25% are not convinced. Among those confident, roughly half (50%) believe this milestone will be reached within the next five years.
The survey, completed in January 2024, asked institutional investors and wealth managers to predict prices for Bitcoin and Ethereum by the end of 2024. Approximately 76% of respondents forecasted Bitcoin to hit $45,000 by year-end; it’s now over $51,000. Only 21% predicted it to reach $50,000 or more.
About 40% anticipated Ethereum to hit $2,500; it’s now over $2,700. Thus, the upper end of 2024 forecasts has been surpassed. Similarly, 60% predicted the global crypto market cap to reach $1.4 trillion by year-end; it’s currently just under $2 trillion.
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Anatoly Crachilov, CEO and founding Partner at Nickel Digital, said: “The broader digital asset market is likely to become the second-order beneficiary of Bitcoin appreciation, as tokens with smart contract capabilities that cater for a diverse range of innovative use cases will attract closer attention. Given the smaller market cap of these tokens, any marginal dollar invested in them tends to have a more pronounced price impact, potentially resulting in these tokens significantly outperforming Bitcoin and Ethereum over the investment cycle, according to our analysis.”
