Bitcoin Will Be Volatile in October, Hedge Fund Co-Founder Says

In a recent interview with Cointelegraph, hedge fund co-founder CK Cheng stated that as long as regulation gives institutional investors a clear path for crypto investment, they will not pull back/sell.

The next bull market for cryptocurrency, according to a former head of risk at Credit Suisse, will be a result of “regulatory clarity” in the United States, which could manifest in early 2023.

Cheng also mentioned that various regulatory initiatives are currently underway in the United States, and according to him, they will soon “open the doors” to cryptocurrency in the mainstream economy.

Cheng’s insight

• Cheng claims that there has been a dramatic shift in how conventional financial institutions view cryptocurrency, with many now testing the waters with experimental investments.
• In August, one of the most highly valued managers in the game, BlackRock, partnered with cryptocurrency exchange Coinbase to offer Bitcoin (BTC) and cryptocurrency access to its financial institutions through Coinbase Prime.
• A number of major financial organizations, including Charles Schwab, Citadel Securities and Fidelity Digital Assets, have joined forces to support a digital asset exchange aimed at both institutional and retail investors.

“You see a lot more traditional financial firms getting involved in the crypto market […] You can see a lot of interest.” What investors actually wishes are clearer rules.

In addition, Cheng also highlighted that many others were waiting for US regulations to be more clearly defined before entering the market:

“It 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 institutional investors would enter the market, as long as the regulations are transparent and provided a clear path for them to follow to avoid running afoul of existing rules.

When asked when the turning point will come, Cheng said he expects that in the first months of 2023 we should see some regulatory clarity, after which a bull run will begin.

October to create chaos!

Cheng predicts that October will be a “very turbulent” month for Bitcoin.

According to him, when high inflation is factored in, as it is now in October, there is a lot of uncertainty and controversy about the Federal Reserve and potential policy changes. Too much monetary tightening by the Federal Reserve is seen as a potential risk to the US economy, which could trigger a deep downturn.

Around 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 positivity and price increases. Public confidence must be restored in the crypto space for us to witness growth like in the years before 2022.