Crypto investors optimistic about year-end price pullbacks: survey
Crypto markets have been capped with low volatility for months, but many investors are optimistic that things could improve towards the end of the year.
On October 24, Bloomberg revealed the findings of its latest MLIV Pulse survey of crypto market participants.
The outlet conducted a similar survey in July when sentiment was decidedly bearish. Things have improved a bit since then, although there has been no improvement in crypto prices which have been trading sideways since mid-June.
Around half of respondents expected the Bitcoin consolidation to continue until the end of this year, but with an upper price limit around $25,000. Conversely, in Q2, the majority thought Bitcoin would dump to $10,000 before returning to $30,000. Neither has happened (yet).
Crypto markets have been highly correlated to risk assets such as technology stocks this year. Some 42% of respondents believed this correlation would continue over the next year, and 43% said they would buy more digital assets.
Regulations a good thing
Despite the deepening crypto winter and bleak regulatory outlook, 60% of the 564 respondents indicated they saw the latest court case as a positive sign for the industry and asset class.
Financial watchdogs have cracked down on and investigated crypto companies such as Three Arrows, Voyager Digital and Celsius in the wake of their bankruptcies this year.
Around 65% of retail investors said they were more likely to invest in crypto when there is greater enforcement. The figure was 56% for institutional investors, suggesting that overall sentiment for regulation is positive.
The US is still pulling the strings when it comes to moving forward with a framework. Congressmen like Jim Himes have suggested that nothing is likely to be on the table until mid-2023 at the earliest. Politicians have bigger fish to fry with the midterm elections next month, though crypto voters could sway things there.
Crypto markets are moving
There has been little movement in digital asset prices starting this week. Total market capitalization has hit a seven-day high of $980 billion, but failed to make further gains.
Bitcoin changed hands for $19,305 at press time. Meanwhile, Ethereum, which had topped $1,350, was up 2.7% on the day.
The altcoin market was a mixed bag, with very little movement in either direction for most tokens.
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