Binance CEO Reaffirms Hope in Crypto Market Despite Price Declines
Binance CEO, Founder, and Crypto Billionaire Changpeng Zhao reassured followers on June 9, 2018, that he’s not worried about the recent crypto price slides. Through a series of posted images, the industry giant demonstrated his belief that the crypto markets undergo the same pattern almost every year, followed by coinciding meteoric rises.
The End of the Markets, or Just a Phase?
Crypto sell-offs have never seemed to worry the Binance team, otherwise known as the developers and associates behind the largest cryptocurrency exchange in the world. Just recently, Binance Labs head Ella Zhang stated that the decline in crypto markets is better for the space, and instead makes way for more legitimate projects.
Many experts and analysts in the field would agree with Zhang’s beliefs. Mike Novogratz, for instance, recently stated that the most recent crypto market price runup was similar to “retail mania” in a sit-down with Bloomberg Invest. Binance CEO Changpeng Zhao, also known as “CZ,” has reaffirmed Binance’s belief in the overall markets and believes that this market decline is just a phase that will pass; just as, in his eyes, it has in the past five consecutive years.
Zhao tweeted on June 9, 2018, that the most recent price decline was simply a repetitive notion that the entire market seems to go through each year. The recent decline in the crypto market appears to be one of the worst in years, worrying many traders and long-term investors. Through a long-range lens, though, Zhao is seemingly apathetic of the sharp drop in capitalization.
“To the old timers, it’s the same pattern every year,” Zhao said on Twitter this past Saturday. Zhao was recently featured on the cover of Forbes magazine in February 2018, stated as being one of the wealthiest figures in the digital asset world.
Assessing the Facts of Past Price Correlations
More importantly, CZ’s claims are factually correct. The current slide in prices are parallel to each year in the overall digital asset market, each in accordance with the same public reaction – that “the bubble has finally popped.”
In 2012 Bitcoin’s price peaked at $35 before crashing back down to the lower $4 amounts
In 2012, we saw Bitcoin’s price drastically rise to $35 before crashing back down to near $4. It would take approximately 18 months before bitcoin would see $35 again, but once it did, its price soared once. Subsequently, we saw similar patterns of meteoric rise and shockingly devastating slides in almost every case.
Zhao went on to further state that people aren’t looking necessarily at the bigger picture. “People seem to think BTC price was flat before this year,” the crypto billionaire stated. “Just the units on the left [are] different.”
Relatively, Zhao is correct. In essence, when price makes outstanding gains, the previous volatility can be easily ignored since the rises and falls become algorithmically smaller when looking at a graph. However, when the graph is analyzed microscopically, it is in fact nowhere near a “steady” upstream trend.
Binance Going against the Current
Changpeng Zhao has previously stated his hopeful future of the digital asset atmosphere and excitement for the ICO space in particular. In fact, while many smaller investors have been withdrawing money, Binance and its associated exchange Huobi have launched a multi-million dollar blockchain-based VC fund to further developments in the sphere.
Binance and its team members are not falling victim to the uncertainty and skeptics regarding prices in the market, and are in fact doubling down on their beliefs in the overall market through bold investments.
As of June 17, 2018, the overall market capitalization of the cryptocurrency market stands at around $280 billion, down from its peak of approximately $830 billion reached in mid-January 2018.