CoinShares chief strategy officer Meltem Demirors said the $2.6 trillion market cap peak forced regulators around the world to take a serious look at cryptocurrencies, but they also don’t want to stop a growing industry.
Saying that “uncertainty is the name of the game for the industry,” Meltem Demirors Noted That it has taken over the larger atmosphere for the past few weeks. “SEC Chairman Gary Gensler Has Indicated” He Wants To Get More Serious About Regulating Crypto Exchanges,” she continued, “worldwide, we are seeing that regulators are starting to pay attention.”
The cryptocurrency debuted this year with a $1 trillion total market cap, which peaked a few weeks ago at $2.6 trillion. Demirors said regulators are starting to take the asset class seriously. “We will continue to see uncertainty as to why the industry, investors and speculators alike wait to see how regulation shapes up,” she said.
Speaking on regulators’ perception about the market, Demirors said that regulators want to ensure Know Your Customer and Anti-Money Laundering compliance and monitor the market without impacting the growing crypto industry.
Demirors stressed that central bankers’ warnings on crypto have an impact on sentiment. “Emotion informs demand, and demand tells what happens in the market,” she explained.
The execution described what we have seen as the biggest deleveraging event in the past weeks. After the May 19 sell-off, which saw the biggest daily wick in bitcoin (B T cHistory, approximately 60% of the total leverage is uncovered from the crypto derivatives market, he noted.
“We see a lot of investors and traders taking a risk-averse approach, where they are trying to hedge their directional risk until we see how these rules are going to shape up.”
Commenting on crypto’s price actions, Demirors believes that crypto prices will not remain flat for very long, stating, “US institutions alone have over $3 trillion of dry powder. This posted is going to happen, and I can’t help but believe that some of them will find their way into this market.