The SEC’s Crypto Industry Crackdown
Critics have criticized the SEC’s “regulation by enforcement” tactics. However, some investors see it as a positive sign that they should invest in digital assets. According to a new survey, the Securities and Exchange Commission’s (SEC) overzealous crackdown on the crypto industry is viewed positively by most crypto investors.
Approximately 60,4% of 564 respondents viewed the recent wave of crypto crackdowns as a positive sign for investing in the asset class.
Compared to 56% of professional investors, approximately 65% of retail investors said they were “more likely” to invest with “stricter crypto enforcement.”
Many US lawmakers and crypto industry participants appear to disagree with investor sentiment. They chastise the SEC for pursuing “regulation by enforcement” of crypto.
In September, the SEC expanded its ability to handle specialized issuer filings by establishing an Office of Crypto Assets solely responsible for dealing with crypto asset applications and services.
Future of BTC
Market conditions have kept many major cryptocurrencies within a narrow price band for months. Approximately 43% of survey respondents said they planned to increase cryptocurrency exposure in the next 12 months. BTC/USD isn’t currently volatile, but signs indicate that the sideways trend will change.
Bitcoin’s Bollinger Bands versus the Nasdaq are the tightest in history, according to popular analyst TechDev and others. This implies an explosive move is imminent.
This year, bitcoin has mostly moved in lockstep with the stock market. Risky asset prices, however, have fallen since the Federal Reserve tightened monetary policy in response to skyrocketing inflation.
The US dollar rose slightly but remained close. Bitcoin’s 20-day volatility, a measure of daily price movement, fell below the Nasdaq and S&P 500 for the first time in two years.
On the other hand, the correlation between Bitcoin and stocks is re-stabilizing. This could lead to an uptrend in BTC if the stock market continues to rise. If there is a positive correlation between BTC and stocks, it may rise again.
