If you have been following the cryptocurrency markets since January, you might expect that most investors are feeling rather depressed right now. However, the latest Huobi Industry Data Report shows a rather different state of mind: it seems that most investors feel confident enough that the current trend will reverse itself to wait it out.
As we know, the cryptocurrency market cap has deflated like an old balloon. Trading volumes have declined, yet interest in Bitcoin and the other top altcoins hasn’t declined in tandem with this. This article in The Merkle will take you to a downloadable PDF of the Huobi Report and the questions asked.
The data was collected from individual crypto investors in 23 countries, including Japan, China, UAS, South Korea and Singapore who answered a questionnaire distributed via Twitter, Telegram and other channels. The results use an index score ranging form 0–100, and where 50 indicate belief that the market cap will stay the same.
Somewhat surprisingly, given the market conditions, the overall average of investor sentiment was 71.7. Short-term investors scored the crypto market at 61.1, but the medium-term investors were more positive with a score of 76.4 and the long-term investors were particularly bullish, with an index score of 87.5.
As JP Buntinx comments in The Merkle article, short-term growth in the cryptocurrency market is always open to a diverse range of opinions. And, quite rightly suggests that crypto enthusiasts aren’t really that bothered by what is happening in the next week or month. This group keep the big picture in their minds and positivity in their hearts.
How will this bullish perspective work for Bitcoin and other altcoins in the coming months? That is hard to answer. But, what enthusiasts expect to see is this, according to Buntinx: “nearly 78% of the survey’s respondents indicated their belief that the industry’s total market cap will increase. According to the report, most people expect major growth in the total market cap over the next three years.”
The cryptosphere loves predictions, and we’ve seen some pretty wild ones. Will the investors surveyed by Huobi be ‘on the money’ — we’ll have to wait ad see.