- Adrian Lai forecasted that cryptocurrency market will mature this year.
- He said the maturity will come with an increase in trading volume and less volatility.
Hong Kong: According to a report from the South China Morning Post today 9th April, the founding partner of Orichal Partners, an Hong Kong-based cryptocurrency investment company, Adrian Lai, forecasted that this year, the cryptocurrency market will attain maturity, experience less volatility as well as an increase in trading volume, especially amongst institutional investors.
Adrian Lai described the amazing growth in market cap of last year — which got to an all-time high of about $800 billion in early January this year — and its subsequent fall to about $256 million, which it is currently, as being “irrational.” He said lack of regulatory oversight and institutional investment was responsible for this overwhelming volatility. However, he made an optimistic forecast about the future:
“Regulators are not banning the development of cryptocurrencies, but are trying to better regulate the market, which should help the industry mature (…) If the regulatory stance gets clearer, large funds will be more assured and willing to commit significant capital.”
As far as the crypto realm is concerned, it has witnessed a considerable regulatory momentum this year. The US CFTC and US SEC hearings last February were devoted to cryptocurrency regulations. Japan, and South Korea among others are presently discussing and issuing regulations for Blockchain Tech, cryptocurrencies, cryptocurrency exchanges, and initial coin offerings, and also considering taxation frameworks, while some others admit that crypto regulatory measures are not fully developed.
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