Real Vision CEO Raoul Palbelieves that cryptocurrencies will survive crashes similar to those that hedge funds have experienced in the past.
Expressing his views in an interview with his analyst, Scott Melker, Pal explained that institutions are still considering stepping into the crypto industry. Future legal regulations for the industry will accelerate these steps.
“We are at a breaking point. Similar to the FTX scandal, Mt. We saw it on Gox. I’ve seen it on Bitfinex, I’ve seen it every damn cycle. This time, however, the ‘Oh my God, the end of the world’ feeling was quite strong. Yes, it’s the end of the world every time, but guess what? It’s not the end of the world.
“I have been in the financial markets for over 30 years. We have seen similar feelings every time. For example, we experienced the same with hedge funds. The collapse of Long-Term Capital Management and the Fed’s intervention in the system are very similar to what happened. At that time, everyone was shouting ‘ponzi’, but as a result, what happened? The net assets of hedge funds have increased by 5 cards in seven years. The reason is simple, the arrangements have been made.”
According to Pal, crypto regulations will create a safer environment for both institutional and retail investors. This is a critical detail that will trigger the re-flow of capital to the markets.
“Everyone tells us that institutions are still looking into this space. My guess is that regulation and global liquidity are going up in prices and they’re starting to come in more meaningfully. They want to follow the trends…
Regulation equals safety, equals green light, equals etc. etc. If this coincides with global liquidity, all will be well.”
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.