Huobi Research: Crypto Market Sentiment Remains Positive

A couple of weeks ago, Fundstrat Global Advisors released the results of a survey that showed the institutional investor now holds a more bullish view of Bitcoin compared to a few months ago.

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A couple of weeks ago, Fundstrat Global Advisors released the results of a survey that showed the institutional investor now holds a more bullish view of Bitcoin compared to a few months ago.

And now, a research group has found that crypto investors are gradually becoming more optimistic of the market’s short-term performance.

The latest positive outlook around the digital market comes at a time the entire cryptocurrency, and leading coin Bitcoin has faced a sustained sell-off period spanning much of 2018.

According to a team of researchers from Huobi Research, investor optimism has looked up over the last one month. The increase is in contrast to the 12.6 percent decrease witnessed in August.

Writing in their Market Sentiment Index Report published this Friday, October 12, the team said that the report covers the period between September 25 and September 30.

The researchers based their findings on survey data collected in 23 countries, with responses from 552 retail and institutional investors.

On the whole, the report found that market sentiment improved by 2.17 percent compared to that of August. The improvement means positivity now stands at about 71.1 points on a scale of 100.

Huobi Research says that the slight increase in overall optimism in September is a result of a 5.87 percent jump in the positive outlook among investors over the medium-term crypto market.

The medium-term index score currently stands at 72.8 points, while the same sentiment over the short-term rose by an index of 2.16 percent to hit 61.6 points.

An uptick in sentiment over the short-term is in line with many expert forecasts over much of summer. The consensus was that a decrease in the volatility of BTC, the top digital asset, would be a precursor to a considerable upsurge in crypto prices.

Bitcoin’s trading volumes did improve earlier this month, and although BTC experienced a slight price rally over the last few days, it has slid off again. BTC/USD is currently trading at just over $6,300.

Data from crypto exchange Bitfinex shows that the coin’s price has moved below its 200-day MA. Bitcoin has lost nearly five percent of its value in the last few days; its decline is coming at a time Bitfinex reportedly announced it had halted fiat deposits.

The rest of the market is doing slightly worse, with the next top three coins all losing value in double digits. Ethereum (ETH) is currently down by over 11 percent; Ripple (XRP) is tanking at 14.08 percent, and Bitcoin Cash (BCH) is 12.72 percent down in the last seven days.

Investors still think Bitcoin’s price will climb in the long-term, even though the overall index score decreased by about 2.75 percent. According to Huobi Research, this has however not affected the general long-term view, with market sentiment remaining bullish at 89.5 points.

The study found that 92 percent of crypto investors anticipate an increase in the overall digital currency market capitalization within the next three years. Of this group, 74 percent expect the market cap to grow by over 30 percent.

Only 4 percent expect the crypto market to shrink substantially, losing over 30 percent. According to the report, sentiment within the Chinese market is most bearish over cryptocurrency, 10 percent higher than it is in the rest of the world.

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