Crypto Markets Face Uncertainty and Apathy, Warns CoinShares CSO
Meltem Demirors, the chief strategy officer at CoinShares, is sounding the alarm on the crypto markets following a period of low volatility during the summer. In an interview with Bloomberg, Demirors highlights the high level of uncertainty in the industry, which is causing various market participants to hesitate.
Demirors notes that despite positive news, such as flows into crypto structured products and a surge in Bitcoin after BlackRock’s spot Bitcoin ETF application, there has been a recent decline in trading volume and outflows. This uncertainty and apathy among investors, traders, and market makers could potentially lead to a “winter of discontent.”
Regulatory Certainty Needed for Crypto Industry
The CoinShares CSO emphasizes that both Democrats and Republicans agree on the need for regulatory certainty in the crypto industry. Demirors, who has been involved in the industry for almost a decade and operates businesses in the United States, stresses that cohesive regulations must come from Congress since various agencies cannot reach a consensus. The complex landscape of lawsuits and precedents further underscores the urgency for bipartisan efforts to establish clear policies.
Hot Take: Crypto Market Volatility May Increase Without Regulatory Clarity
Meltem Demirors warns that the current state of uncertainty and apathy in the crypto markets has the potential to escalate into a “winter of discontent.” Despite positive developments like increased flows into crypto products and BlackRock’s involvement, recent outflows and declining trading volume indicate a cautious approach by investors and market participants. To address this situation, it is crucial for US lawmakers to provide regulatory certainty for the crypto industry. Without cohesive regulations from Congress, the industry may face continued uncertainty and potential volatility.
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