Markets
49% are bullish despite recent market turbulence, survey finds
Cryptocurrency sentiments divided
Divided Sentiments: Bullish vs. Bearish Outlook
The survey showed that 49.3% of participants are optimistic about the future value of cryptocurrencies, and this large cohort still sees the potential for further gains and growth in the months to come.
Meanwhile, about a quarter are holding out little hope, but are split roughly evenly between those who are completely bearish and those who are only slightly bearish.
At the same time, what is particularly striking in the result of this survey is that more than a quarter of the participants had no or a weak bias on one side or the other, i.e. towards bullish or bearish outcomes.
This neutrality could be interpreted by many as a cautious approach, waiting for more definitive market signals before committing to a firmer position.
According to CoinGecko research analyst Lim Yu Qian, this broadly neutral sentiment could mean that market participants are unsure about Bitcoin’s directionality or are taking a “wait-and-see” approach while waiting for clearer trends to emerge.
This disparity of sentiment is even more evident if we analyse the responses type of market participantSpectators, not operators or direct investors in the sector, expressed a more bearish sentiment, with 2 in 5 pessimists.
This group also had the highest percentage of neutral behavior, perhaps moving away from active trading or a calculated retreat to observe market movements from afar.
In contrast, the most optimistic were experienced cryptocurrency holders who had been invested in digital currencies for years, indicating that greater exposure and greater familiarity with how markets work could be linked to a positive price outlook.
Sentiment among individuals working in the cryptocurrency industry also followed a similarly positive outlook, highlighting how their faith in the industry and its long-term growth potential was unshakeable, regardless of the current market challenges.
Current market recovery
While these mixed feelings paint a picture of a market at a crossroads, where excitement and caution are equally present among its participants, it is worth noting that this is happening when the market has contradicted all expectations.
Like both Bitcoin and Ethereum spot exchange traded funds (ETFs) was approved by the United States Securities and Exchange Commission (SEC), many expected the cryptocurrency market to be on the rise. However, contrary to these expectations, the market has recently been on a downward trend.
While it seems like the global cryptocurrency market is currently experiencing a bit of a recovery, up nearly 1% in the last day and currently valued at over $2.2 trillion, it is worth noting that this current market performance comes against the backdrop of Bitcoin and Ethereum’s notable plunge last week.
Last Friday, Bitcoin traded at $53,000 for the first time since February, while Ethereum also traded at a low of $2,847. Both assets are now on the rise, with BTC back at $58k while ETH is trading at $3,175 at the time of writing.
Featured image created with DALL-E, chart from TradingView