Bitcoin’s recent sell-off notwithstanding, cryptocurrency investors are beginning to grow more optimistic about the market’s short-term direction.
That’s according to the latest Market Sentiment Index Report from Huobi Research, which identified a slight uptick in investor optimism over the previous month. Released on Friday, the September report is based on from survey data compiled from Sept. 25 to Sept. 30 from 552 retail and institutional investors in 23 countries.
Overall market sentiment clocked in at 71.1 points out of a maximum of 100, representing a 2.17 percent increase over August. That index bump was bolstered by a 5.87 percent increase in investors’ medium-term cryptocurrency market outlook, with that index score currently standing at 72.8. The short-term index also increased, rising 2.16 percent to 61.6 points.
This positive short-term market sentiment had been mirrored by many analysts who, as CCN.com reported, predicted that bitcoin’s decrease in volatility would eventually result in a major break to the upside.
However, following a moderate rally earlier this week, the bitcoin price once again bounced off its 200-day moving average (DMA), sinking approximately five percent in conjunction with reports that cryptocurrency exchange Bitfinex had halted fiat deposits (temporarily, according to the company). At present, the bitcoin price is holding slightly above $6,300.
Despite an increase in positive sentiment about the market’s short- and medium-term movements, the long-term index actually decreased 2.75 percent in September. Nevertheless, the long-term sentiment index is still 89.5, representing an overwhelmingly-bullish outlook.
According to the survey, a full 92 percent of investors expect the cryptocurrency market cap to increase over the next three years, with 74 percent signaling that they expect the increase to be greater than 30 percent.
Notably, Huobi Research found that Chinese investors were most bearish on the cryptocurrency market’s outlook, with respondents from this region being more than 10 percent more likely to expect a market decline than their overseas counterparts.
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Last modified: June 14, 2020 11:04 AM UTC