Meltem Demirors, Chief Strategy Officer (CSO) at CoinShares, recently expressed concerns about the current state of the cryptocurrency markets. In a recent interview with Bloomberg, Demirors highlighted the increasing levels of uncertainty that are causing doubts among various market players.
Demirors described last summer as a โsummer of apathy,โ a period marked by subdued market activity despite positive news. For example, the announcement of BlackRock's Bitcoin ETF spot application caused a brief spike in Bitcoin prices and capital inflows into crypto-structured products. However, the broader market has seen $300 million in outflows over the past month. Additionally, trading volumes for exchange-listed crypto products have fallen by 70%, and there has been a 30% decline in trading volumes in the spot and derivatives markets.
According to Demirors, this lackluster summer could turn into a โwinter of discontentโ as investors, traders and market makers remain cautious and inactive. He stressed that the prevailing uncertainty is keeping market participants on the sidelines.
On the regulatory front, Demirors expressed that there is bipartisan agreement among US lawmakers on the need for regulatory clarity in the crypto industry. He stressed the importance of a cohesive approach by Congress, as existing regulatory bodies disagree on how to proceed. Demirors, who has been in the cryptocurrency industry for almost a decade and has created multiple cryptocurrency-related businesses in the US, mentioned that he does not want to consider relocating his operations due to the lack of clear policies.
He concluded by stating that the current situation, filled with numerous lawsuits and conflicting legal precedents, requires a bipartisan effort to achieve meaningful change. Demirors believes that only a united approach from all parties can resolve the complexities facing the crypto industry today.
Featured image via Pixabay
