Changpeng Zhao, founder of Binance, visited CNBC’s media outlet, Squawk on the Street and completely dismantled the current cryptocurrency bearish perceptions in less than two minutes. Most of the things he said are based on a deep understanding of the current state of the cryptocurrency market forces and economy but his words still had a soothing effect on the cryptocurrency ecosystem especially as they came from a leader in the industry.
The first thing the interviewer was interested in was Changpeng Zhao’s (CZ’s) views on the way that Bitcoin’s bulls have sordidly defended the $20,000 BTC line. CZ stated that he believed that there’s a psychological barrier there because that was the “last peak”. In recent times, Bitcoin’s price has never gone lower than the previous all-time high but this time, the case was different, probably because of the Terra collapse and Tesla’s paper hands. In the end, the market ended up defending the $20,000 support.
The interviewer then proceeded to ask about other factors like the increase in the supply of money and Bitcoin’s correlation to NASDAQ. To this , CZ replied that those are two very relevant factors but in the end, cryptocurrency is a mass psychology market and the last All-time high is the new barrier.
The next question for CZ was about the factors that could propel Bitcoin and cryptocurrency in general into the next chapter. CZ carefully stated that nobody can accurately forecast those factors. He said “Nobody really forecasted NFTs, DeFi, etc. Which probably drove the last bullrun.” And in 2017, ICOs seemed to be the catalyst. “Six months before those things happened, very few people can forecast it.”
CZ believes that the market is much bigger this time with many new applications either being developed or already on the scene. He also said that he believes that the whole space is moving in a positive direction because many countries are embracing cryptocurrencies instead of banning them. His last phrase is a mirror of the current state of the world’s economy as he mentioned that the talks of inflation, recession, etc. and the current macroeconomic position of the world will drive Bitcoin and cryptocurrency adoption.
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