Investors claim that as the SEC becomes more aggressive, cryptocurrency is becoming more appealing.
Market participants report that they are more likely to invest in the field following increased enforcement action by the US Securities and Exchange Commission and other watchdogs who have been looking into crypto’s naughtiest companies.
Nearly 60% of the 564 participants in the most recent MLIV Pulse survey said they thought the recent wave of legal actions in the cryptocurrency space was a good sign for the asset class, whose renowned volatility has all but disappeared recently.
Significant interventions include the US regulatory probes of the defunct cryptocurrency companies Celsius Network and Three Arrows Capital, as well as the SEC inquiry into Yuga Labs, the company that developed the nonfungible tokens (NFTs) known as the Bored Ape collection.
“I support the ‘yes’ side. If cryptocurrency is more regulated, more professional investors will be able to invest in it because you need a regulated investment opportunity, according to Chris Gaffney, head of world markets at TIAA Bank.
The more they can integrate cryptocurrency into conventional investing, the better off it will be.
The same is true of bitcoin. When questioned in July, the majority of investors expressed significantly higher optimism over cryptocurrencies.
The majority of respondents believed it was more likely to first plummet to $10,000 than to rise to $30,000 this summer, but now over half predict the world’s largest cryptocurrency by market value will trade between $17,600 and $25,000 until the end of this year.
To be fair, respondents had more alternatives to pick from this time around than they had in the prior study.
According to Mary-Catherine Lader, COO of Uniswap Labs, in an interview with Bloomberg TV, “Our investors understood and the market recognised that the decentralised protocols offer distinct advantages that not only can assist crypto markets, but also traditional markets more generally.
Although the price of Bitcoin has decreased by roughly 60% so far this year, it has been unable to meaningfully move out of the range of $18,171 and $25,203 since the last poll was done.
The T3 Bitcoin Volatility Index has dropped 33% since the token’s all-time high of around $69,000 on November 10, indicating that volatility has also largely decreased.
Since March, Bitcoin has maintained a high correlation to risk-on assets as well as the S&P 500. In the past three months, investors have mostly treated cryptocurrencies the same as other assets due to the increasing interest rate environment.
Only 43% of respondents stated they would expand their exposure to digital assets over the next 12 months, while 42% predicted that the association between cryptocurrencies and tech stocks will remain unchanged.
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- Investors claim that as the SEC becomes more aggressive, cryptocurrency is becoming more appealing.
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