Ethereum Merge can trigger high volatility, BitMEX CEO warns

The Ethereum Merge is one the most anticipated events within the crypto space for this year. Crypto firms are always on the lookout to spot any issues that might arise as the new upgraded Ethereum network becomes operational.

Alexander Hoptner (CEO of BitMEX), spoke to Cointelegraph about how the trading platform prepares for the Merge. He also discussed institutional adoption possibilities after the transition from proof-of-stake (PoS). He also shared his thoughts on Bitcoin and Ether (ETH).

Hoptner explained that, aside from making sure all boxes are checked on company preparations for big events ahead of them, it is important to be attentive to what could happen and ensure that the services they provide are functioning properly. He explained:

“You must be gentle, let’s just say, awake to see what happens. There is a possibility of high volatility. You need to ensure that your services are available. […] We do not expect major disruptions other than volatility.”

BitMEX’s executive said that forks will work if they are supported by a strong community. Hoptner pointed out that the biggest risk to forks is a lack of miners’ support.

The interview also touched on the topic of institutional adoption following the Merge. The BitMEX CEO feels that PoS Ethereum is better for institutions, as it addresses the main concerns of institutions. He stated that:

“I am certain that this will push for institutional adoption as well as mass market adoption, because the general current generation pays attention to the efficiency and environmental development.”

He also pointed out that large financial institutions are already investing in crypto, mainly BTC and ETH. Hoptner stated that 1 to 2% crypto is already being offered by a lot institutions. Hoptner expects this trend to continue.

Related: ETH Merge – CoinGecko founder shares his strategy for forked tokens

The BitMEX CEO disagreed with the popular belief that the crypto market is in a crypto winter. He shared the belief of his team that the current market is not experiencing a bear market, but rather a minor correction similar to what is seen in traditional finance. He stated that:

“Beforehand, it was extremely overheated on the market. We were too fond of money, and this is now a minor correction. However, we are extremely bullish about Bitcoin, very bullish about Ethereum, particularly for proof-of stake.

Hoptner thinks that the Ethereum Merge represents a positive development for the industry and that their team is optimistic about the future value of ETH. Hoptner also stated that Ethereum has a strong community and that ETH could eventually surpass BTC. He stated that ETH can surpass Bitcoin relative growth and he believes it can.

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