The monthly cryptocurrency sentiment report by Huobi Academy of Blockchain Application indicates that investors are very bullish when it comes to the future of cryptocurrency market cap. The report was distributed over the internet through wechat, weibo, E-mail, twitter, telegram and other channels. The cryptocurrency sentiment reports surveys almost 2000 crypto investors from 23 different countries to gauge short, mid, and long term outlooks in the markets.
The huobi Academy of Blockchain Application cryptocurrency investor sentiment index is also issued once a month and is weighted out of 100 by the results of all the questionnaires collected. Again the data is broken down in to short-term (within the month), mid-term (within six months), and long-term (within 3 years) sentiment.
Optimistic sentiment has increased 17% from the previous month to a level of 83.9% positive. Short, mid and long term sentiment increased 24.2%, 15.7% and 7.5%, reaching positive scores of 75.9%, 88.4% and 95% respectively. After the market decline from January to April, a rising sentiment is an important signal for investor confidence in the cryptocurrency markets.
Over 50% of those who answered the questionnaire were very optimistic and expected a greater than 30% increase in market cap this month, with 81% of respondents expecting a growth greater than 10%. 7.6% of respondents indicated they felt that the markets would not change much and remain the same with fluctuations of +-10%. Only 11.4% of respondents were slightly pessimistic or bearish for the short term.
Bullish outlooks and confidence in the markets increased for the next six months with 71.4% of respondents expecting very optimistic increase greater than 30%, and 90% overall expecting an optimistic bullish run of greater than 10% gains. Those who felt the market would remain sterile fell to only 3.4%, with only 5.8% of respondents remaining pessimistic and viewing the potential for a bear market in the mid-term.
Outlook for the next 3 years was given an even greater bullish rating than the short-term and mid-term results, with 84.1% of respondents expecting at least 30% gains in market cap, and 92.7% of respondents expecting gains of 10% of higher. The bearish outlook fell to only 2.7% from the previous months results of 6.9%.
As is usual with volatile markets such as with the cryptocurrency markets, investors confidence grows with longer time frames. When viewing the cryptocurrency markets it is important to always look at the long-term bigger picture than be driven by emotional swings in the markets. The overall bullish trend is still in tact.
Corrections are the norm when it comes to cryptocurrency prices and market cap. A retracement was expected after the tremendous extension during bull run which the cryptocurrency markets experienced during December 2017 through to January 2018. Many investors estimate that the bottom of that correction has occurred and that we are gearing up for another uptrend to reach new all time highs. Traders are currently experiencing lower lows and higher highs, which echo a bullish sentiment in the markets overall.
The first quarter of 2017 was attacked with FUD (fear, uncertainty and doubt) from every angle. From Korean exchange rumors, US Tax time, Tether fears, and some of the largest exchange hacks of all time, it is no wonder the markets experienced a downtrend during that time. A similar downtrend fueled by the Chinese government freezing bitcoin withdraws from exchanges also occurred in the first quarter of 2017. The start of 2018 was similar to the start of 2017.
If the second quarter of 2018 reflects that of 2017 we may be in for a solid bull-run once again, and from the looks of the markets today, it would seem as though we are at the start of another uptrend through May and June. FOMO (fear of missing out) may start to set in if we can sustain levels over $10,000 for Bitcoin (BTC).