Home Crypto Crypto’s ‘Summer of Apathy’ Could Turn to ‘Winter of Discontent’, Says Meltem Demirors – Here’s What She Means

Crypto’s ‘Summer of Apathy’ Could Turn to ‘Winter of Discontent’, Says Meltem Demirors – Here’s What She Means

by Janine Lindsey

The chief strategy officer of CoinShares, Meltem Demirors, is issuing a warning on the state of the cryptocurrency markets following a period of low volatility. In an interview with Bloomberg, Demirors highlights the high level of uncertainty in the crypto industry, which is deterring many market participants.

Demirors describes the recent period as the “summer of apathy,” despite positive news such as flows into crypto structured products and a spike in Bitcoin following the BlackRock spot Bitcoin exchange-traded fund (ETF) application. However, over the last month, there has been $300 million in outflows and a 70% decrease in trading volume in publicly listed crypto products. Trading volume on the spot and derivatives side has also seen a 30% decline. This lack of activity is a clear indication of the uncertainty in the market, and Demirors believes it has the potential to turn into a “winter discontent” if investors continue to sit on the sidelines.

Demirors emphasizes the need for regulatory certainty in the United States. She believes there is consensus among both Democrats and Republicans that something needs to be done to provide clarity for the crypto industry. As someone who has been in the industry for almost a decade and has built multiple businesses dealing with crypto in the United States, Demirors expresses concern about the possibility of having to consider moving if regulatory policies are not established.

Demirors suggests that a cohesive approach to regulation needs to come from Congress, as the current fragmentation among regulatory agencies is not conducive to progress. She anticipates a daunting task ahead as there are numerous lawsuits, cases, and conflicting precedents being set. Demirors hopes that a bipartisan effort can be made to address these challenges and create a favorable environment for the crypto industry.

In conclusion, Demirors warns of the uncertainty plaguing the crypto markets and the potential consequences if the industry does not receive regulatory clarity. While there is some agreement among politicians regarding the need for action, it remains to be seen how quickly and effectively regulations will be implemented. The crypto industry, investors, and market participants are eagerly awaiting a resolution to these uncertainties to facilitate growth and innovation.

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