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Huobi Cryptocurrency Investor Sentiment Index Report-May

Sentiment Index Results

Huobi’s Market Sentiment Index was 79.3 for the month of May, a 5.1% decrease from last month. Specifically, the short-term Market Sentiment Index was 70.4, a 5.5% decrease from April; the mid-term Market Sentiment Index was 82.7%, a 5.1% decrease from April; the long-term Market Sentiment Index was 89.5%, a 4.5% decrease from April.

Huobi’s Market Sentiment Index score ranges from 0–100, with 50 points representing market neutral.

A total of 1,044 valid responses were collected this month. The questionnaires were distributed on domestic/foreign platforms such as WeChat, Twitter, Telegeram and etc. to both individual and institutional investors, from May 25 to 31.

(1)Individual Investors

1. How do you expect the total cryptocurrency market cap to change in the coming month?

The short-term investor expectations toward the cryptocurrency market was generally optimistic in May. 78.5% valid respondants expected the total market value of cryptocurrency to increase in the next month (a 5.1% decrease compared to last month); 39.02% valid respondants expected the market value of cryptocurrency to substantially increase in the next month (a 21.74% decrease compared to last month). The other 19.27% valid respondants hold more pessimistic view, as they expect the market value to go down in the next month.

2. How do you expect the total cryptocurrency market cap to change in the next 6 months?

Most investors surveyed were bullish toward the cryptocurrency market performance in the coming 6 months, with 39.02% respondants expected a substantial increase (fewer respondants expected a slight increase compared to last month). In general, 84.55% respondants were confident in the market performance in the coming 6 months (62.09% respondants expecting the cryptocurrency market cap to increase substantially and 22.46% expecting the market cap to increase slightly); 9.6% respondants were pessimistic about the market performance in the next six months.

3. How do you expect the total cryptocurrency market cap to change in the next three years?

Most Respondants were bullish towards the cryptocurrency market performance in the coming three years, with 1.44% less respondants expecting the market cap to decrease substantially. In general, 90.5% respondants were confident in the market performance in the coming 3 years (80.15% respondants expecting the cryptocurrency market cap to increase substantially); 5.47% respondants were pessimistic towards the market performance in the coming 3 years (a 1.44% increase compared to April).

(2)Results by Geographic Locations

In general, Chinese respondents were more confident than overseas respondents in a substantial increase to cryptocurrency market caps in the future (Chinese respondents were more bullish in all short/mid/long-term market performances), with 40.5% Chinese respondents expected a substantial increase in the coming month, 68.5% Chinese respondents expected a substantial increase in the coming six months, and 80.1% Chinese respondents expected a substantial increase in the coming 3 years.

(3)Institutional Investors

Institutional respondents were generally bullish towards the market performance, especially in mid/long terms. Although most respondents expected the market cap to increase significantly in the coming 6 months to 3 years, they were uncertain towards the short-term performance of the cryptocurrency market, as the majority of respondents expected the market cap to remain the same or increase slightly.

Rule Description

The cryptocurrency investor sentiment index is issued once a month and weighted by all the questionnaire results collected at the end of the month. Out of 100 points, the higher the score, the more confident the investor is to the future market. At the same time, this report will separately disclose the weighted results of three questions, representing the short-, medium-, and long-term sentiment indicators of investors.

Weighting Rules

  1. The calculated weighted score of each question represents investors sentiments toward cryptocurrency market’s short-m medium- and lomg-term performance. The scores for the A, B, C, D, and E options are 100, 75, 50, 25, and 0 points, respectively.

2. The calculated weighted score of each question represents the investors’ sentiment index this month. The questionnaire has a total of 3 questions (short, medium, and long-term sentiment index), with score weights of 45%, 35%, and 20%, respectively. The result of the survey is weighted by the time frame. Thus, the sentiment index is calculated based on the weighted score of each question.

3. The calculated weighted score of each question represents the institutional investors’ sentiment index this month. Institutional investors in this survey constitutes of Huobi Super Nodes. The sentiment index is calculated based on the weight of individual and institutional investors, with individual investors weighted 20% and institutional investors weighted 80%.

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Huobi Research

Huobi Research

Blockchain industry top think tank, affiliated to Huobi Group.