Market participants believe that Bitcoin will be stuck in $18,000-$25,000 range until end of this year, here’s why
In a recent excerpt, Bloomberg stated that traders overall have been positive on the SEC’s recent action against crypto companies, believing it to be a bullish signal for this type of asset. They believe this because they would prefer to invest in crypto “after more enforcement action”.
In this regard, many investors have changed their expectations toward Bitcoin from what they stated in July. Now, they believe that BTC will remain above the $17,600 level, going up to $25,000 at least until 2022 is over.
Investors View the SEC’s Crypto Witch-Hunt Positively
A recent MLIV Pulse survey has demonstrated that investors consider the SEC’s recent legal actions against crypto market participants to be a bullish thing for crypto. Of the 564 people surveyed, nearly 60% said they believed so.
The recent investigations of the securities regulator include Three Arrows Capital and Celsius Network (both of which went bankrupt), and Yuga Labs, which created the NFT collection Bored Ape.
One of the respondents, Chris Gaffney, President of World Markets of TIAA Bank, said that he believes these investigations are positive because when there is more regulation on the crypto market, it will stop being the “Wild West” and Will be like traditional investment tools, becoming “better off”.
Bitcoin sentiment improves from July
This wave of positive expectations has extended to Bitcoin. The majority of investors who participated in the survey have become more bullish on BTC price compared to their opinion back in July.
He believes that the leading cryptocurrency will remain confined between the $17,600 and $25,000 levels until the end of 2022. In comparison, in July, he expected BTC to drop to $10,000 and then return to the $30,000 line.
However, Bloomberg adds, in this past survey they had more options to choose from rather than in the summer.
The leading crypto, bitcoin, has been trading in a range between $18,171 and $25,203 since July, being down nearly 60% this year, when the last survey was conducted.
Since March, Bitcoin has been demonstrating a strong correlation with the S&P 500 index. Now, 42% of survey participants said they expect BTC to remain correlated to tech stocks over the next year. Forth-three percent plan to get more of their funds poured into cryptocurrencies and assets related to them within the next 12 months.
