It’s safe to say that CZ is optimistic about the future of bitcoin and crypto. Changpeng Zhao visited CNBC’s Squawk on the Street and flipped the prevalent bearish narrative on its head. In less than 2 minutes. Most of what CZ said is based on common sense and a basic understanding of market forces, but it’s still soothing to hear an industry leader say it. Especially in this fear phase of the cycle that we find ourselves in.
— Squawk on the Street (@SquawkStreet) July 28, 2022
Note that while Binance’s business depends on the performance of altcoins, especially BNB, CZ makes a clear distinction between bitcoin and crypto in general. On the other hand, even though the interview is about bitcoin, CZ sneaks in here and there.
In any case, let’s take a look at what Binance’s CEO thinks about current market conditions and the future of bitcoin and crypto.
What did CZ yell on US National TV?
The first thing that interested the interviewer was how the Bitcoin bulls defended the “20Kish” line. According to CZ, it was “the last peak” so there is a “psychological barrier” there. Until now, the bitcoin price had never been below the all-time high of the previous cycle. This time it was different, probably because of Tesla’s Paper Hands and the collapse of Terra. However, the market ended up defending the 20K line.
The interviewer then asked about other factors, such as the increase in the money supply or the correlation of bitcoin with the Nasdaq. According to CZ, these are both relevant factors, but in the end “it’s a mass psychology market” and the last ATH is the barrier. It is fair that we quote Binance Academy for an explanation of the psychology of market cycles:
“In short, market sentiment is the general feeling that investors and traders have regarding the price movement of an asset. When market sentiment is positive and prices are continuously rising, there is said to be has an uptrend (often called a bull market) The reverse is called a bear market, when there is a continuous decline in prices.
Recently, as we regularly do here at NewsBTC, we checked on famous fear and greed index for an overview of current market sentiment. Here is what we found:
“Last week, the value of the indicator had even increased to 34 as the price of the coin saw a recovery. However, as the run ended and the crypto crashed again, sentiment investors also collapsed.
The report notes that this trend indicates that participants in the BTC (and broader crypto) market believe that this recent rally was just a fake.
BNB price chart on BinanceUS | Source: BNB/USD on TradingView.com
What is the next catalyst?
Back to the interview, the next question was about the factor that could catapult bitcoin and crypto into their next chapter. Carefully, CZ said no one could accurately predict this. “Nobody really planned for NFTs, DeFi, etc. Which probably led to the latest bullrun.” And in 2017, ICOs seemed to be the catalyst. “Six months before these things happen, very few people can predict them.”
In bull markets, practice risk management.
If everything has gone to 0, will your life still be fine? If not, you have invested too much. Cut it in half and ask for more.
Do not invest too much. (No financial advice)
— CZ 🔶 Binance (@cz_binance) July 29, 2022
Then and only then, CZ speculated. He thinks the market is so much bigger this time around, with so many new apps being developed. The whole space is moving in a positive direction with most countries adopting regulatory frameworks instead of banning bitcoin and cryptocurrencies. It’s hard not to be bullish in an environment like this, even if the market still fears prices.
The last sentence is the funniest, and it goes to the current state of the world. “The macroeconomic situation, there’s going to be high inflation, talk of recession, etc. All of these things are driving the adoption of bitcoin…into crypto.”
Featured Image: CZ, screenshot from the video | Charts by TradingView