Investors are more likely to invest in cryptocurrency when regulators take strict enforcement action.

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), two US financial market regulators, are actively clamping down on the cryptocurrency industry.

But it’s thought that this crackdown will draw more investors into the market.

Tough regulatory action benefits cryptocurrency.

It is said that the sector would benefit from the increased regulatory scrutiny of the cryptocurrency market because it shows that the business is maturing.

Because more money would flow into crypto assets as a result of regulatory certainty, this gives many investors a bullish perspective.

Cryptocurrency values have fallen sharply over the past year, but the volatility is decreasing as some assets, like Bitcoin, become increasingly associated with the stock market.

US officials are now focusing on the cryptocurrency industry. A number of state agencies have started looking into the collapse of Celsius and Three Arrows Capital.

On the other side, the SEC is looking into potential security offering violations at Yuga Labs and Ripple.

However, the sector thinks that because the market is considered to be mature, the legal action being taken could lead to widespread adoption.

The head of world markets at TIAA Bank told Bloomberg that regulation of cryptocurrencies was necessary to draw in institutional and conventional investors.

Nearly 50% of those who responded to the survey’s questions about the price of bitcoin predicted that by the end of 2022, it will trade between $17,600 and $25,000.

Compared to the summer of 2022, when many predicted that Bitcoin would fall to $10,000, this is a more optimistic picture.

Decreasing market volatility for cryptocurrencies.

Bitcoin’s volatility has greatly decreased. Since Bitcoin hit an all-time high of more than $69,000 in November of last year, the T3 Bitcoin Volatility Index has decreased by 3%.

The asset’s decreasing volatility is attributable to the S&P 500 Index since the beginning of the year.

Bitcoin has been trading in the $19,001 to $20,001 region for the past month without experiencing a spike. 42% of those surveyed believed that during the following year, the association between cryptocurrencies and tech stocks would remain unchanged.

However, only 43% of respondents stated they would increase their portfolio of cryptocurrencies during the following year.

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