Every month Huobi Academy of Blockchain Application releases the “Huobi Cryptocurrency Investor Sentiment Index Report” aimed at representing the views of both retail and institutional investors on the future of cryptocurrency market capitalization.
The report try to measure the sentiment of crypto investors in the short, mid and long-term (respectively 1 month, 6 months and 3 years).
Being Huobi Pro one of the most important and most liquid exchange in the world, it is very well positioned to reach out to investors and ask them about their opinions and outlooks on the future developments of the cryptocurrency market. Contrary to other investors sentiment reports, such as the Bitcoin Misery Index produced by Fundstrat, Huobi’s report is freely available for everyone and contains equally important information.
The Index is weighted to represent the opinion of retail investors for the 80% while the remaining 20% reflects the view of “Professional investment institutions”. Such institutions are the Super Voting Nodes of HADAX (a sub-segment of Huobi Pro for new assets listing). This is the first time that data from professional investors were taken into account.
Huobi Academy of Blockchain Application distributes all questionnaires via the internet and the identity of the respondents cannot be confirmed. They are trying to expand and diversify the scope of the distribution as much as possible in order to rule out any bias in the sample population.
For the April report a total number of 1974 valid questionnaires were collected through WeChat subscriptions, Weibo, E-mail, twitter, telegram and other foreign and domestic channels. Investors from 23 countries including China, the United States, South Korea, Japan, and Singapore filled out and returned the questionnaires. The questionnaires were distributed from April 25 to April 30.
The questions asked in the questionnaire are pretty simple: “How do you expect the total cryptocurrency market cap to change in the next month? next half-year? next three years?”
The Investor Sentiment Index score is based on these 3 questions, each of whom has a different weighted score. The short term expectations are the most important, accounting for 45% of the final result. According to the formula used to create the index, the closer the time is, the higher the weight of the sentiment index is. Medium and long term expectations weighs in respectively 35% and 20%.
Out of 100 points, the higher the score, the more confident the investor is in the future of the market.
RESULTS.
The Composite Investor Sentiment Index in April scored 83.9, with a Month-to-Month (MoM) increase of 17.0%, while the short-term investor sentiment index scored 75.9, with an MoM increase of 24.2%. These results are consistent with new optimism stemming from the news of advancements of the Lightning Network (LN), the institutional money coming soon from Wall Street with Goldman Sachs about to open a crypto-trading desk and NASDAQ considering to open a cryptocurrency exchange. Also, Tom Lee of Fundstrat forecasts a surge of the marketcap due to stagionality phenomena, mostly because of Consensus 2018, the 4th annual blockchain technology summit organized by CoinDesk, expected to host a record numbers of attendees.
Source: Huobi Academy of Blockchain Application.
Usually cryptocurrency investors try to keep the big picture of the game in mind and they are in for a mid/long-term goal. That is way an overall bullish uptrend has always been reported. Huobi’s report is consistent with that reality.
The med-term sentiment index scored 88.4, with a MoM increase of 15.7%.
Source: Huobi Academy of Blockchain Application.
The long-term sentiment index scored 94.0, with a MoM increase of 7.5%.
Source: Huobi Academy of Blockchain Application.
Huobi Academy of Blockchain Application is also responsible for the release of other reports on different subjects. Follow the link to find out more about their researches: (https://blog.huobi.pro/hc/en-us/categories/360000247651-Reports.)