Crypto markets have been range bound with low volatility for months, but many investors are optimistic that things may improve towards the end of the year.
On Oct. 24, Bloomberg revealed the findings from its latest MLIV Pulse survey for crypto market participants.
The outlet carried out a similar survey in July when sentiment was decidedly bearish. Things have improved a little since then though there has been no recovery in crypto prices which have been trading sideways since mid-June.
Around half of the respondents expected the Bitcoin consolidation to continue until the end of this year but with an upper price boundary of about $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-on assets such as tech stocks this year. Around 42% of those surveyed thought this correlation would continue over the next year, and 43% said that they would be buying more digital assets.
Regulations a good thing
Despite the deepening crypto winter and gloomy regulatory outlook, 60% of the 564 survey respondents indicated they viewed the latest legal action as a positive sign for the industry and asset class.
Financial watchdogs have been cracking down and investigating crypto companies such as Three Arrows, Voyager Digital, and Celsius in the wake of the bankruptcies this year.
Around 65% of retail investors said they were more likely to invest in crypto when there is greater enforcement. The number was 56% for institutional investors, suggesting that the overall sentiment for regulation is positive.
The U.S. is still dragging the chain when it comes to moving forward with a framework. Congressmen such as Jim Himes have hinted that nothing is likely to be on the table until mid-2023 at the earliest. Policymakers have bigger fish to fry with the midterm elections next month, though crypto voters could sway things there.
Crypto markets moving
There has been little movement in digital asset prices to kick off this week. Total market capitalization has inched up to a seven-day high of $980 billion but failed to make further gains.
Bitcoin was changing hands for $19,305 at the time of press. 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 the majority of tokens.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
