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DailyCoin Regulatory Action makes Crypto Industry more attractive to investors

Regulatory Action makes Crypto Industry more attractive to investors
  • Recent MLIV Pulse surveys show that U.S. investors are more willing to invest in cryptocurrencies.
  • Most respondents believe that (BTC’s) price will be between $17,600 to $25,000 by the end of this year.
  • A correlation between BTC and S&P 500 risk aversion remains.

According to Bloomberg, investors are more confident about investing in crypto as the U.S. Securities and Exchange Commission, along with other regulatory bodies around world, work is underway to increase their oversight and control of cryptocurrency trading firms.

60% of those surveyed said that legal action taken against crypto companies facing difficulties in recent months is a positive sign. This is especially important since the asset class has lost two-thirds its market value in this year.

The respondents suggested that the investigative action that followed the bankruptcies of Three Arrows Capital and Celsius Network, along with the SEC’s pursuit of Yuga Labs, the creator of the popular Bored Ape Yacht Club NFT collection, are proof of that.

“I’m in the ‘yes’ camp,” said TIAA Bank’s Global Markets President Chris Gaffney, “as a professional investor, you need a regulated investment opportunity and it opens doors for more professional investors to get into crypto, if it is more regulated.”
For Gaffney, the more investors can get from “Wild West” crypto assets and traditional investments, the better.

A Change of Perspective for Investors

The optimistic sentiment expressed by the 564 respondents extends to Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization. Nearly half of the respondents believe that Bitcoin (BTC) will close the year with a price fluctuating between $17,600 to $25,000.

A July poll revealed a significantly more pessimistic attitude to the price cryptocurrency. Investors believed that BTC would fall to $10,000 this year rather than rise to $30,000.

The latest study offered participants a wider range of options than in previous editions. However, the publication seemed clearer about a shift in industry stance.

“Our investors and markets recognized that decentralized protocols have unique advantages that could benefit not only crypto markets, but traditional markets more broadly as well,” Labs COO Marie-Katherine Leder told Bloomberg TV.
BTC has registered $18,171 as its lowest price since July. $25,203 was the highest and there has been a noticeable decrease in its volatility overall. According to the ‘T3 Bitcoin Volatility Index‘, volatility is down 33% since Bitcoin’s all-time high price of almost $69,000, hit on November 10th, 2021.

The BTC Risk Aversion Correlation is Continued

On the other hand, the leading cryptocurrency has maintained a high level of correlation with the risk aversion of the S&P 500 stock indices since March 2022. As risk aversion grew across the financial markets as a result of the Fed’s persistent interest rate hikes, the price of Bitcoin consistently measured losses in value.

Four out of ten respondents think that the relationship among digital assets and technology stock will continue for at least the next 12 months. While 43% said they plan to increase their exposure crypto over the same period, 43% agreed.

The Flipside

  • The two most common responses made in the investor survey, when asked to characterize the crypto space, were “Ponzi” and “future”.

Victoria Greene, an investment advisor from G Square Private Wealth, stresses that there are still many unknowns about the status of cryptocurrency investments, regulation and trading platforms.

Digital assets are the future for those who promote them, and those who hold a traditional view of business will continue to believe that it is a Ponzi scheme. Greene explained.

Why you should care

  • Governments and regulatory bodies around the world have shown interest in regulating the crypto market in the near future.
  • The central banks believe that crypto assets pose a clear threat both to the financial system and the security of users because they lack regulation.

Further, the results of the MLIV Pulse survey suggest that investor confidence in this sector tends to rise with the increase in regulatory intervention in crypto industry.

Find out more about regulation of crypto and government responses to it:

Sam Bankman Fried Clears the Air on Controversial Crypto Regulatory Framework

Interim FDIC chief says that stablecoins should complement the digital dollar.

See original on DailyCoin

News Source and Credit

Stocksak Editorial

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