Over 60 per cent of UK investors plan to buy bitcoin in 2021
Sixty-three per cent of UK investors plan to buy bitcoin for the first time or increase their holding in the digital currency during 2021, according to new data released by financial markets platform uk.Investing.com.
According to the survey of 802 respondents conducted between 20 and 22 January, 30 per cent of bitcoin investors also expect the cryptocurrency’s price to surpass USD100,000 this year, and 61 per cent of all UK investors (including those without a position in bitcoin) believe the it will surpass USD60,000. Only 17 percent believe that bitcoin has already reached its highest point this year.
“After a record-breaking year in 2020 that saw it jump more than 300 per cent, bitcoin looks to stay strong in 2021 as more retail – and big-name institutional buyers – enter the market,” says Jesse Cohen, senior analyst at uk.Investing.com. “For those already in, the strategy in place remains to HODL.”
Among the bitcoin investors who were surveyed, 74 per cent affirmed that they plan to increase their investment in the cryptocurrency this year. And of those not currently invested in bitcoin, as many as 47 per cent said they planned to become new investors of the digital currency in 2021. Twenty-six percent of new bitcoin investors plan to make a GBP1-GBP1,000 investment in bitcoin this year, and 21 per cent are planning a GBP1,000-GBP10,000 investment.
Optimism in bitcoin has accelerated in more recent months, with 50 per cent of bitcoin investors reporting that they entered that space within the last three months, and 71 per cent of new bitcoin investors in the past year stating that they also entered following the October boom.
“The recent surge in first-time novice investors – combined with the flush of ultra-cheap money being pumped into the global financial system by the Federal Reserve and other global central banks – have found their way into many risk-perceived assets, including bitcoin,” says Cohen.
Examining some of the threats to bitcoin in 2021, a majority of UK investors (53 per cent) identify new regulatory restrictions as the biggest concern, with a pullback leading to a large selloff representing the next-largest threat in the estimation of respondents. As far as other cryptocurrencies are concerned, 83 per cent of investors expect the value of ethereum to rise this year, followed by litecoin (35 percent), Bitcoin Cash (28 per cent), and ripple (25 per cent).
“With bitcoin moving into the mainstream and capturing greater attention, it will likely draw further scrutiny from regulators in the United States, Europe and Asia. In particular, I’m concerned with what the Biden administration could mean for cryptos,” says Cohen. “In this market, nothing seems to surprise me anymore. bitcoin will likely reach the USD60,000-level - probably in the first half of 2021. The path forward may not necessarily be as smooth afterwards however. I’m expecting a retracement. The question is just how deep will it be?”