Exchange CEO Forecasts Crypto Market Uptick in Coming Weeks
As the world sits in flux between coronavirus and financial market concerns, AAX crypto exchange CEO, Thor Chan, thinks cryptocurrencies will ultimately make out ok.
“During a period of intense panic, many investors fled the markets in search of cash, or to defend their positions elsewhere,” Chan told The Merkle in a March 30 interview, referencing recent plunging crypto and mainstream markets. “Cryptocurrency markets suffered together with all other markets,” he continued, adding:
“But over the coming weeks and months, as governments cut interest rates, I think we will see the crypto markets surging.”
All markets have fallen during the coronavirus pandemic
Over the past month or so, in the face of the coronavirus pandemic, mainstream markets suffered carnage comparable to the market crash of 1987, as well as the 2008 recession.
Initially, crypto assets fell alongside traditional markets, with Bitcoin reaching its most recent pinnacle of pain between March 12 and 13, dropping more than 50%. Since then, however, the asset has shown price action relatively unattached to traditional markets.
Current circumstances may force mass reevaluation
Global coronavirus conditions have spurred drastic measures, leaving many folks quarantined and changing daily life dramatically for people around the world.
“If anything, this is a time during which a lot of people may want to reflect on how we’ve organized our society,” Chan said. “Such thinking can be around social issues, environmental issues, but also around finance and economics.”
The CEO noted investigation into blockchain and crypto use cases as a useful endeavor during these times.
“I think the value of crypto will become more apparent to the mainstream, including institutional investors, and this will bring more capital into the market,” Chan said.
Present quarantine measures have caused many companies to put more thought into the digital realm, leading some to further investigate remote work methods. As the crypto industry is largely digital, such conditions could logically steer more of the public toward blockchain and crypto solutions.
Cointelegraph reached out to AAX for additional details, but received no response as of press time. This article will be updated accordingly should a response come in.