OKEx’s Head of Financial Markets, in a recent interview, made a statement about Bitcoin price, the last Chinese restriction and more. Disclosures that concern both individual and institutional investors are a first-hand source, as OKEx is one of the largest players in China.
Lennix Lai: Bitcoin rally took place with leverage
After peaking at $65,000 in mid-April, the president coin went through a major correction, losing 50% of its price. The biggest question mark of investors in this period was whether the bull market, which has been going on for months, is over. Lai answers this question as follows:
I think the correction is essentially over, or at least close to ending, those who want to sell should sell, those who want to leverage should use it. The recent rally was mostly driven by leveraged trading. We could see crazy numbers in all sorts of trading metrics showing everyone adding too much leverage. It makes sense, bull markets come alive in this form.
According to his statements above, Lai attributes most of the decline to the lack of leverage, and therefore thinks that there has been a sharp collapse.
“The fix may be incomplete”
However, after his explanations above, Lai stated that the correction is “really complete” or “near ending”, while there is still a lot of uncertainty in the crypto market due to the ongoing regulatory pressures, adding that things are starting to calm down and prices are not reacting too much to the negative news.
In addition, the manager, who thinks that we are in a bull run, also claims that the Bitcoin price may rise to $ 60,000 again. However, $100,000 goals or higher peaks will only be possible in a year or two, according to Lai.
Should Chinese FUDs for Bitcoin be a concern?
The Chinese FUDs, which were discussed later in the interview, are arguably one of the most discussed bets of recent months. China repeats its restrictive decisions for Bitcoin. While we have experienced many of these FUDs before, there are some recent developments that are of interest to investors. Cryptocoin. com, it is assumed that tons of Bitcoin mining hardware will be moved from Guangzhou to Maryland.
In this bet, Lennix Lai explains that China is specifically after Bitcoin mining, but it is perfectly legal to own Bitcoin and the cryptocurrency can be owned “like a digital property.”
Other dangers exist for cryptocurrencies
In addition to these, Lai stated that although he knows that China is aware of other dangers in crypto trading, he does not impose any restrictions on it, adding that many people are aware of them, but are not banned. The word of the Financial Manager is as follows:
It’s still okay for those who want to trade in China, but you should be aware of the risks.
Finally, when asked about the differences between OKEx, which has more than 1,600 employees worldwide, in the European and Chinese markets, Lennix Lai, Financial Markets Manager, replied in the following form.
European or Western-based clients are more professionally oriented. They already have a lot of crypto knowledge and are already very professional. They understand a lot about trade compared to Asia-Pacific Economic Cooperation (APEC) clients.