Binance CEO Changpeng Zhao (CZ) thinks that the Bitcoin bear market is good for cryptocurrencies. The person behind Binance, the world’s largest cryptocurrency exchange by volume, comments on current lows. It also conveys long-term expectations. Here are the details…
Binance CEO: Current bearish trend is “normal”
In a conversation with Messari CEO Ryan Selkis at the Mainnet conference on Wednesday, CZ, connected by video chat, stated that a four-year crypto market cycle is normal. He said that in the long run, a bear market is healthier than a seemingly never-ending uptrend. “Price adjustments are actually good,” CZ said. He added that investors should not look to token prices as signs of how the cryptocurrency market is doing.
Instead, he suggested that investors look at the number of users buying and using crypto, as well as the number of different Blockchains and Web3 projects. He noted that the industry is still in the “early stages” and still has a lot of room to grow. cryptocoin.com As we have also reported, CZ shared this thought in its previous statements. Right now, “we’re not in a saturated market,” he said.
The Binance executive argued that the crypto industry is actually in a healthy state. He urged viewers to “get out of the winter”. Cryptocurrency winter is an industry term for a prolonged decline in cryptocurrency prices. Crypto winters typically range from well-known currencies like Bitcoin and Ethereum to non-fungiable tokens (NFTs) and lesser-known altcoins.
CEO optimistic about bear market and more
However, CZ is optimistic about the bear market and the overall situation. When it comes to regulation, he argued that some regulators, especially in the US, are trying to incorporate crypto into existing financial frameworks such as securities or commodity binary. “We’ve seen a lot of positive progress for regulatory frameworks,” CZ said. He also used the following expressions:
There will be some cryptocurrencies that are similar to securities and maybe to commodities and currency. But Bitcoin currently looks like all three.
Therefore, he suggested that existing regulatory frameworks may not be sufficient. According to the CEO, governments should create an entirely new category for blockchain-based assets, which CZ describes as “new technology for data transfer” and a “new asset class” in its own right. Meanwhile, at the time of writing, BTC has gained 1.5 percent. It managed to rise above $19,000 and it seems to have escaped from the $18,000 levels for now.
