Bloomberg Announced: Bitcoin Is At These Levels In December!

A crackdown by the US Securities and Exchange Committee (SEC) and other observers investigating crypto companies is proving to be a boon for the branch. Market participants say they are more likely to invest in the space following further regulatory action. In the Bloomberg survey, respondents are more optimistic for Bitcoin (BTC) than in July.

Why is SEC regulatory action seen as bullish for crypto?

Almost 60% of the 564 respondents to the latest MLIV Pulse survey said they saw the recent flow of legal proceedings in crypto as a positive sign for the asset class, whose trademark volatility has nearly collapsed in recent months. Amid major interventions are US regulatory investigations by bankrupt crypto companies Three Arrows Capital and Celsius Network, as well as an SEC investigation into Yuga Labs, the creators of Bored Ape’s NFTs.

Chris Gaffney, world markets leader at TIAA Bank, says:

I’m in the ‘yes’ camp. As a professional investor, you need a regulated investment opportunity. The more regulated it is, the more professional traders open the doors to get involved in crypto. The more crypto they can get from the predatory West and the classic investment, the more affordable it will be.

Where will Bitcoin be at the end of the year?

The sentiment extends to Bitcoin (BTC). Many investors were a little more optimistic about crypto when asked in July. Nearly half of those surveyed expect the leading crypto to continue to trade mid-$17,600 to $25,000 by the end of this year. It departs from the sour look of this summer, which many say is more likely to drop to $10,000 than to climb $30,000. To be fair, contributors this time had a larger menu of options than was available in the previous survey. Mary-Catherine Lader, COO of Uniswap Labs, explains in a Bloomberg interview:

Our investors and the market recognized that decentralized protocols have unique advantages that could benefit not only crypto markets but also classical markets more broadly.

MLIV Pulse: Bull or bear for Bitcoin and altcoins? As you follow, Bitcoin has dropped about 60% this year. Bitcoin price has been stuck between $18,171 and $25,203 since the previous survey was conducted. He couldn’t get out of this band in a meaningful way. The token hit an all-time high of almost $69,000 on November 10. Since then, the T3 Bitcoin Volatility Index has dropped 33%.

Bitcoin has been strongly correlated with assets at risk and the S&P 500 since March. Investors are combing crypto with a brush like everything else in an environment of rising interest rates. That’s why they’ve hardly changed the situation in the last three months. Nearly 42% of respondents think crypto’s ties to technology shares will remain the same over the next 12 months. However, only 43% say they will increase their digital asset portfolio on a one-to-one period.

Cryptocurrencies ‘Ponzi’ or ‘Future’?

This has been the story of two halves for crypto in 2022, when chaos reigned in the first half of the year. There were bankruptcies like that of Voyager Digital Ltd. and the $40 billion destruction of the Terra ecosystem. Nearly $2 trillion in total cost wiped it from the branch’s record at the end of 2021. In June, the broader macroeconomic environment began to change. Traders turned to more classic assets like bonds and FX for profit. In this environment, things have changed as the cryptocurrency begins to approach the end of the current range flat. Fairlead Strategies managing partner Katie Stockton says the low volatility is “probably related to the indecision out there.”

Respondents are also divided about crypto, despite the division’s relative position in the middle of traders. When asked to choose a word to describe the field, the two most recognizable responses were ‘Ponzi’ and ‘The Future’. Responses are almost equal in the middle of these. Victoria Greene of G Squared Private Wealth says, “It’s almost like a religion. If you believe, you will always believe no matter the price or the wind,” she says. Greene concludes with this:

There is a dilemma in the midst of boom and bust. This perfectly describes crypto and the wide variety of potential outcomes. There are many unknowns, including the arrangement and platforms, as well as what it actually is and what it will be used for. So, if you are a true believer, you say that this is the ‘Future’. People with a more classical view say it is a ‘Ponzi’.

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