Bitcoin Will be Volatile in October, Says Hedge fund Co-Founder
In a recent interview with Cointelegraph, hedge fund co-founder CK Cheng stated that as long as regulation provides institutional investors with a clear path for crypto investments, they will not back off/sell.
The next cryptocurrency bull market, according to a former head of risk at Credit Suisse, will result from “regulatory clarity” in the United States, which could manifest at the beginning of 2023.
Cheng also mentioned that currently, various regulatory initiatives are underway in the United States, and according to him, they will soon “open the doors” for cryptocurrency in mainstream economics.
“You see a lot more traditional finance firms getting involved in the crypto market […] You can see huge interest.” What investors really want is clearer rules.
In addition, Cheng also highlighted that many others were waiting for U.S. regulations to be more clearly defined before entering the market:
“That will allow more established financial institutions and investors to enter the market.”
He made it clear that this is how and when the next bull market will begin.
He made it very clear that the Institutional investors would enter the market, as long as regulations are transparent and provided a clear path for them to follow to avoid running afoul of any applicable rules.
When asked when the turning point will come around, Cheng said he anticipates that in the early months of 2023 we should see some regulatory clarity, after which a bull run shall begin.
October To Wreak Havoc!
Cheng predicts that October would be a “very tumultuous” month for Bitcoin.
As per him, when high inflation is factored in, as it is this October, there is a lot of uncertainty and controversy about the Federal Reserve and potential policy shifts. Too much monetary policy tightening by the Federal Reserve is seen as a potential risk to the U.S. economy, which might trigger a deep downturn.
Surrounding this uncertainty, Cheng predicts high levels of volatility in the stock and cryptocurrency markets this year.
All we can do at this point is cross our fingers and hope that 2023 brings about positivity and price surges. The public trust needs to be restored in the crypto space for us to witness growth like in the years before 2022.Source