Half of the respondents expect the price of BTC to consolidate further, while most believe it would drop to USD 10,000. Around 65% of retail investors consider greater enforcement of regulations would encourage them to invest in cryptocurrencies more.
Although crypto markets have experienced low volatility for months, many investors are optimistic about the end of the year.
A survey conducted by Bloomberg in July revealed that investors were bearish about the prices of cryptocurrencies. However, the situation has improved slightly, as they have traded sideways since mid-June.
About half of the investors consulted expect the price of Bitcoin (BTC) to consolidate further, with a cap of around USD 25,000. By contrast, in the second quarter, most believed it would drop to USD 10,000 before rallying to USD 30,000.
This year, there has been a high correlation between crypto markets and risky assets like tech stocks. Some respondents (42%) thought that would continue next year, while others (43%) said they would buy more cryptocurrencies.
Institutional Investors Think Regulations Are Positive for the Crypto Market
Despite the intensifying crypto winter and bleak regulatory landscape, 60% of the respondents consider the latest legal action positive for the industry.
Due to bankruptcies this year, financial watchdogs have investigated crypto firms like Three Arrows, Voyager Digital, and Celsius Network.
According to around 65% of retail investors, greater enforcement would encourage them to invest in cryptocurrencies more. The responses by 56% of institutional investors suggested positive general sentiment toward regulation.
Regarding moving forward with a framework, the United States has dragged the chain. Jim Hives and other congresspeople have hinted they might have nothing on the table until mid-2023. Although legislators have more fish to fry with next month’s midterm elections, crypto voters might have an influence there.
The Crypto Market Has Moved Slightly over the Last Week
Earlier this week, the prices of crypto assets moved slightly. The overall market capitalization achieved a seven-day high of USD 980 billion but could rise further.
Bitcoin is trading at around USD 19,322 and has accumulated a 0.9% gain over the last 24 hours. Meanwhile, Ether (ETH) is worth more than USD 1,339 and has risen by 2.2%.
The situation in the altcoin market was mixed, as most tokens moved little, either upward or downward.
Katie Wood Predicts the Market Capitalization of BTC Will Rise
Cathy Wood, the CEO of the management company ARK Invest, recently talked about her expectations for the market capitalization of Bitcoin.
The executive predicted it would rise to USD 4.5 trillion when Bitcoin traded at USD 250. Then she asked well-known economist Arthur Laffer to study the white paper on digital gold.
The CEO of ARK Invest expressed her interest in the Bitcoin prospects as a unit of account and a store of value. Laffer said he had looked for that after the end of the gold standard, as BTC is a monetary system based on rules.
Wood added that this conversation led her to invest over USD 100,000 in Bitcoin. At USD 250 per unit, equivalent to 400 BTC, over USD 7.7 million when writing this article.
Michael Saylor, the co-founder of MicroStrategy, had previously predicted a new all-time high in the price of Bitcoin over the next four years. In October, renowned investor Kevin O’Leary said that the value of digital gold would resume its growth after adopting a regulatory bill for stablecoins.
By Alexander Salazar
