Bitcoin’s volatility might be tamed by institutional entry: OKEx’s Cheung

In a recent interview, Andy Cheung, Head of Operations at OKEx, discussed the overall developments in the crypto-derivatives market and spoke about the resurgence of regulatory compliance within various digital asset exchanges.

Over the past few months, the likes of Bakkt and CME have solidified themselves in the industry by competing with regulated institutional offerings. OKEx hasn’t backed down, however, with the exchange entering the derivatives market with Bitcoin Futures about 2 years ago. OKEx has since steadily built its reputation in the crypto-industry.

Giving his input on the price of digital assets in the crypto-industry, Cheung stated,

“We believe that crypto-derivatives will help to stabilize markets, but volatility is not going away. Institutions will certainly continue to enter the cryptocurrency world, and these institutions might tame some of the volatility in Bitcoin.”

However, despite hinting at a limited period of volatility in the future, Cheung said that he believes that any asset class that is up by 80% in a year should be expected to display some sort of volatility.

OKEx’s Head of Operations also opined on the current tussle between policymakers and the crypto-industry, stating that trust is an important factor. He drew a similarity between traditional financial institutions and explained that initially, the banking sector also faced a lot of uncertainty. He said,

“Many forget that the early years of banking were also slightly chaotic. The adoption of ATM machines and debit cards were rocky and even uncertain at times. Financial systems and the transfer of assets is largely built on trust.”

According to Cheung, with time, the ecosystem will observe a substantial improvement in terms of regulations, adding that the trust factor would need to permeate from top to bottom in the industry.