Bitcoin will trade between $17600 and $25000 through the end of the year, survey of market participants shows.
A crackdown by WE Securities and Exchange Commission and other supervisory bodies Who has been investigating crypto’s biggest companies that are proving to be a boon for the industry, with market participants saying they are more likely to invest in the space following enforcement action bigger.
Nearly 60% of the 564 respondents to the latest MLIV Pulse survey said they view the recent spate of regulatory actions in crypto as a positive sign for the asset class, whose brand volatility has dissipated. change in recent months. Key interventions include U.S. regulatory investigations into bankrupt crypto firms Three Arrows Capital and Celsius Network, as well as the SEC’s investigation into Yuga Labs, the creators of Yuga Labs. Bored Ape inedible or NFT token collection.
“I am in the ‘yes’ camp. As a professional investor, you need a regulated investment opportunity and it will open the door for more professional investors to get into crypto, if it is more regulated.” Chris Gaffney, president of world markets at TIAA Bank. “The more they can get crypto out of the Wild West and into traditional investing, the better.”
Sentiment extends to Bitcoin. Most investors were slightly more bullish on cryptocurrencies than they were when asked in July. Almost half of the respondents expect electronic money at market value to continue to trade between $17,600 and $25,000 through the end of the year — a departure from the sour outlook this summer, when most assumed it had plenty more likely to fall to $10,000 for the first time than to climb to $30,000. To be fair, respondents this time have a broader menu of options to choose from than what was available in the previous survey.
Mary-Catherine Lader, CEO of Uniswap Labs, said: “Our investors have recognized and the market recognizes that decentralized protocols have unique advantages that not only can be offered. benefits for the crypto market but also the traditional markets.” Bloomberg Television interview.
Although Bitcoin is down around 60% this year, its price has been stuck between $18,171 and $25,203 since the previous survey was conducted, unable to break out of that range in a meaningful way. meaningful. Volatility has also largely decreased, with the Bitcoin T3 Volatility Index down 33% since the token hit an all-time high of nearly $69,000 on Nov.
Bitcoin has kept a close correlation with risk assets as well as the S&P 500 since March, barely changing its position over the past three months as investors use crypto with the same desks. brush like anything else in a rising interest rate environment. Around 42% of respondents said they think the correlation of cryptocurrencies with tech stocks will stay the same over the next 12 months, while only 43% say they will increase their exposure to the digital asset. numbers in the same period.
It’s a tale of two halves of crypto in 2022, with the first half of this year dominated by chaos. There have been bankruptcies, like that of Voyager Digital Ltd., and $40 billion wiped off Terra blockchain Ecosystem. About $2 trillion in overall value has been removed from the industry’s end-of-2021 record. In June, things started to change with the cryptocurrency starting to stabilize towards its current range-bound levels as the broader macroeconomic environment deteriorated and traders turned to more traditional assets like bonds and FX for profit.
Read More: Bitcoin Becomes Less Volatile Than Stocks Raise Red Flags
“Lower volatility could be related to indecision there,” said Katie Stockton, managing partner of Fairlead Strategies.
In September, Ethereum The network has completed a major network upgrade called Consolidation, which is estimated to reduce the blockchain’s energy consumption by around 99%. However, only about a third of investors said they believe the so-called Flippening, where the market value of Ether eclipses that of Bitcoin, could happen in the next two years – a figure has largely stagnated since July.
Survey respondents also express a very broad church of opinion about cryptocurrencies, typifying the fact that despite the relative disgrace of the field among traders, it remains a topic of discussion. cause division. When asked to choose one are from describing the space, the two most popular responses were roughly split between “Ponzi” and “future”.
“It’s almost like a religion – if you believe, you’ll always believe regardless of price or otherwise,” says Victoria Greene of G Squared Private Wealth.
“The dichotomy between boom and bust perfectly describes cryptocurrencies and a range of potential outcomes. There’s a lot of unknowns, including regulation and background and what the hell it really is and what it’s going to be used for,” she said. “So if you’re a true believer, you say that’s the future.” Those with a more traditional view might say it’s a Ponzi, she said.
