Kraken published its “Crypto Sentiment” survey for the second half of 2020. Ether (ETH), Monero (XMR), and Ripple (XRP) are among the favorite altcoins.
According to the “Crypto Sentiment” survey for the second half of 2020, 66% of a group of Kraken customers are bullish on the Bitcoin market by 2021. The respondents mention that they expect the price of Bitcoin to reach a high of about USD 250,000 next year.
The survey results indicated an average price of USD 36,602 for Bitcoin and USD 1,454 for ETH in 2021. This implies that there is an expectation of a 122% return for Bitcoin in 2021, compared to the price of USD 16,500 that the pioneering cryptocurrency had when Kraken applied the survey.
The report indicates that the respondents seem more optimistic about the evolution of Ether’s price in 2021. Taking into account the price of USD 460 that ETH had at the time of the survey, the participants believe that the return for Ether will be on average 215% in 2021.
Guidelines for Trading Bitcoin
The Kraken survey also sought to study the sources of information, resources, and tools that guide market participants in making decisions when buying or selling Bitcoin and other cryptocurrencies. The participants chose, on average, three sources of information.
Concerning the search for essential information, influencers and experts occupy first place, possibly because the respondents consider the issue of cryptocurrencies complex. For that reason, they use social networks and the media to identify specialists and other sources of information that can help them clarify concepts of cryptocurrencies.
Concerning the resources and tools that the respondents use the most to obtain such information, they favored the fundamental parameters of the different networks, professionals and traders, research studies, and technical analysis, among others. They do not consider the media in general to be a remarkable resource or tool in the search for specific technical information.
Impact of Traditional Markets on Cryptocurrencies
The survey participants also had to say whether the global economy and traditional markets had affected the cryptocurrency market in the past six months. Regarding the responses of the second half, Kraken highlights the difference compared to those of the first half.
In the survey of the first half, the respondents saw less influence from traditional markets and the overall picture on the market of Bitcoin and cryptocurrencies in general. In the second half, 70% of the participants believe that there is a relationship.
This reflects a direct influence of the financial markets crash in March this year, which included the cryptocurrency market. The subsequent recovery of the different markets led to a coupling between Bitcoin and traditional assets never seen before.
Although a recent decoupling between the Bitcoin and gold markets took place, there were record values in the correlation between the two assets months after the crash.
Ranking of Altcoins
The most popular altcoins include Polkadot (DOT), which ranked second behind Ether (ETH). DOT emerged in August 2020, after years of development, and is now among the top ten altcoins by market capitalization. Its popularity is due to its community, developer support, existing projects, interoperability, and technology, among other things, according to the respondents.
In the Kraken survey of the first half, LINK ranked eighth but moved to third place in the second survey due to factors such as community, growth, scalability, and utility. Altcoins associated with DeFi platforms such as Synthetix (SNX), Uniswap (UNI), Aave (AAVE), and yearn.finance (YFI) were also favorites in the most recent semi-annual survey.
By Alexander Salazar
