Ex-BitMEX CEO believes that Hong Kong’s legalization of digital assets will be a prerequisite for a bull market

Former BitMEX CEO Arthur Hayes voiced an opinion that Hong Kong’s plans to act as an intermediary between China and the rest of the world to legalize digital currencies could be a prerequisite to another bullish trend in the market. The entrepreneur believes that Hong Kong is capable of becoming an international center for crypto assets.

Hayes wrote in his essay that the history of the digital currency industry is in North Asia, specifically in the so-called “Mainland China”, Hong Kong, Taiwan, and Macau. But the centralized American platforms did not have a significant impact on the crypto market.

The expert said that popular exchanges such as Coinbase, Gemini or Kraken are platforms where retail and institutional investors from the United States can only buy and store their assets. According to Hayes, the change in Hong Kong’s policy to be more loyal to the cryptocurrency business suggests that China has a good chance to return and gain a foothold in the digital currency market.

The former CEO of BitMEX also concluded that Hong Kong’s focus on cryptocurrencies is one of the constituent elements of China’s financial strategy. If such an initiative is implemented, it will become a serious support for the next bull market.

According to exmo.me development director Maria Stankevich, against the backdrop of the upcoming elections to the US Congress, financial markets, including cryptocurrency, are demonstrating strength. But predicting a similar behavior of rates that took place after the last elections in 2020 is not very correct.

Then the crypto market was in a bullish stage, and the price of bitcoin rose from $15,000 to $61,000 by April 2021. However, now the stock and cryptocurrency markets are still bearish, said Stankevich.

Igor Pan, a specialist in digital assets of the Finmir marketplace, believes that the development of a medium-term trend in terms of an increase in the cost of BTC can be influenced by at least a “light hope” for an early suspension of the rate growth by 75 b.p. with a reduction of at least 0.25% or suspension of the increase.

Pan believes that in this case, Bitcoin can overcome the $20,000 mark, and grow to $24,000-$28,300 in November. As a probable price maximum, the expert named the psychological mark of $36,800.