Changpeng Zhao, the CEO of Binance, a major crypto exchange in the world, certainly is bullish about the crypto market’s future. CZ smashed all bearish outlooks of the crypto space through his statement in a CNBC interview. The prominent thing to be noted in his interview is that CZ was that even though Binance’s performance depends on altcoins and primarily BNB, he gave special attention to Bitcoin (BTC), the largest cryptocurrency, he highlighted how he expects Bitcoin Adoption to increase amid concerns of a recession.
However, most of the derivations or conclusions by the Binance CEO were based on a basic understanding of the domain and some fundamental analysis tools. Therefore, amid the fear of recession and crypto crash sessions relying on just these statements would not be recommended. But yes many points he mentioned were indeed relevant. CZ said that the $20,000 price range for BTC is considered the “last peak” and it created a “psychological barrier” for its investors who did not expect it to go higher.
To explain the nuance of psychology market cycles let’s quote Binance Academy, the best choice for this kind of article.
“In short, market sentiment is the overall feeling that investors and traders have regarding the price action of an asset. When the market’s sentiment is positive, and prices are rising continuously, there is said to be a bullish trend (often referred to as a bull market). The opposite is called a bear market when there is an ongoing decline in prices.”
CZ then went on to say that there are possible chances of a rise in Bitcoin Adoption amid high inflation pressures and recession fears. He said that:
“The macroeconomic situation, there’s going to be high inflation, the talk about recession, etc. All of those things drive adoption into bitcoin… into crypto.”
According to the current situation, the statement doesn’t seem to become a reality. However, no one can give a completely accurate prediction of what would happen in the crypto space. Therefore, we might also witness an unprecedented rise in Bitcoin Adoption if the various economic factors support that.