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Binance CEO speaks about Bitcoin [BTC]’s bull run; says “I don’t make predictions. I just react”

Ajay Narayan

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Binance CEO speaks about Bitcoin's [BTC] bull run; says "I don't make predictions. I just react"
Source: Unsplash

In a recent interview with CryptoGlobe, Changpeng Zhao, the CEO and Co-founder of Binance spoke about trans fee mining business model, cryptocurrency exchanges pumping fake volume and when he expected the next major bullish run in the cryptocurrency market.

Further, Zhao was asked about Trans fee mining and how it could affect the cryptocurrency ecosystem. Changpeng opined that the trans fee mining business model was very damaging and most of the exchanges who had adopted this model had seen a significant decline in their trading volume. Furthermore, it was a very complicated way to raise funds. According to him, the law of demand and supply shows that issuing many platform tokens would surely result in the prices going down.

Changpeng was also asked about the increasing demand for stable coins like Circle USDC and Gemini dollar. How these coins were affecting the cryptocurrency market. According to CZ, stablecoins were very important and a majority of the people did not understand its potential. He further added that one positive aspect of stablecoins was that they would introduce fiat money into the cryptocurrency space.

Another topic of discussion was regarding the fake volumes shown by exchanges. Changpeng stated that wash trading was a process where one trader buys from another trader and then sells back to the first trader. Exchanges do the same to increase their trade volume. He added that it is very difficult to stop this problem and complex mechanisms had to be adopted to prevent it.

The interview covered another important aspect which was about the next bull market and when it would return. According to CZ, analyzing markets was not something he would do because any predictions made by him would either be scrutinized or people would take his advice to buy and sell. He stated:

“As an exchange operator, I kind of influence price, but if you look at the chart, what is very clear right now is that we have seen a very strong $6000 support in 2018, whereas in 2015, the support level was $200”

He further added that they were not in a bear market and the bull market could return anytime. Furthermore, historical data showed that October to December was usually when markets go up. He further stated,

“but I am not saying that it will this year, or that it will not. I don’t make predictions. I just react”





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Ajay Narayan is a full-time journalist at AMBCrypto. He has majored in Economics, Political Science and Sociology. His interests are inclined towards writing and investing in cryptocurrencies.

Bitcoin

Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021

Priya

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Bitcoin [BTC] will likely reach $100,000 with a market cap of over $2 trillion before the end of 2021
Source: Unsplash

The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.

According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.

Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,

“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”

Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,

“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”

Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,

“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”





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