The sharp decrease in Bitcoin price volatility in recent months and the prolongation of digital currency winter may have discouraged some analysts from starting an uptrend in the short term. However, the results of a new Bloomberg survey show that many investors are more optimistic about market conditions than they have been in months.
To Report On October 24, Bloomberg published the findings of its latest MLIV Pulse survey of cryptocurrency market participants.
Bloomberg conducted a similar survey in July, when investor sentiment was decidedly bearish. Although the situation has improved a little since then, the price of digital currencies has not returned to the previous conditions and these assets have been trading in a range market since the middle of June (end of June).
About half of the respondents expected Bitcoin to continue its current trend between $17,600 and $25,000 by the end of this year. In contrast, in the July survey, more people thought that the price of Bitcoin was more likely to fall to $10,000 than to jump to $30,000.
This year, the cryptocurrency market has been highly correlated with risky assets such as tech stocks. About 42% of the participants in this survey think that this correlation will continue in the next year; 43% of people also said that they will buy more digital assets in the new year.
Investors’ positive feeling towards legislations
Despite the prolonged digital currency winter and the gloomy outlook for the regulatory process in this area around the world, 60% of the 564 survey respondents indicated that they see the latest regulatory actions as a positive sign for the classification of this industry and asset class.
Financial watchdogs are dealing with digital currency companies such as Voyager Digital, Three Arrows and Celsius with great sensitivity following bankruptcies this year.
About 65 percent of retail investors say they are more likely to invest in cryptocurrencies when enforcement is expanded. This figure for large (institutional) investors was 56%, which shows that overall feelings towards the legislation are positive.
When it comes to moving forward and creating a regulatory framework, the US still seems to be deliberately blocking progress. Representatives of the US Congress, such as Jim Himes, have indicated that the digital currency legislation will probably not be pursued until mid-2023. Policymakers have more important issues to address with next month’s midterm congressional elections approaching; However, pro-crypto voters can also sway the election.
The digital currency market continues its trend
The trend of digital currency price growth at the beginning of this week was very small. The total market capitalization rose to its seven-day peak of $980 billion, but failed to break through.
At the time of writing this report, Bitcoin is hovering around $19,400 with a growth of 1.3% compared to the previous day. Ethereum, with an increase of more than 3.4% in the same period, is traded in the range of $1,350.
The status of altcoins has been different from one currency to another during this period, and most tokens have experienced a slight increase or decrease in price.