Binance co-founder and CEO Changpeng Zhao (popularly known as “CZ”) shared his thoughts on the cryptocurrency market.
CZ made his comments during an interview with Carl Quintanilla, co-host of the show “Squeak in the street”From the American channel CNBC.
When Carl Quintanilla asked why $ 20,000 appears to be the support level for bitcoin, CZ replied:
“Nobody knows for sure, but the last peak in 2017 was around $ 20,000, and it has been lower for two years and they have been above them. So I think that’s probably one of the reasons there’s a slight psychological barrier there.“
Carl Quintanilla then asked what was the catalyst for bitcoin’s next big move and CZ replied:
“I don’t think anyone can predict very accurately, as nobody really predicted NFT, DeFi, etc., which probably led the last bull run. even before that, in 2017, they were mainly ICOs. Six months before these things happen, very few people can predict it.
So for the next … there are so many other apps in space, I don’t know which one, but I think all of these things are moving in the positive direction. The regulatory landscape looks pretty good: most countries have adopted regulatory frameworks; they don’t ban … cryptocurrencies. The macroeconomic situation … favors the adoption of … cryptocurrencies.“
Someone then asked CZ if the US is in a recession and why the cryptocurrency market could avoid entering a deeper crisis, and he replied:
“To be honest, cryptocurrencies should logically move inversely to the stock market. In theory they should be negatively correlated, but today the cryptocurrency market is so small that whenever the stock market collapses … people want to hold cash, and today most people who trade cryptocurrencies also trade stocks. So right now it’s positively correlated, which is illogical, but that’s just how it is now.“
As for the cryptocurrency industry’s perspective on the regulatory climate in the US, here’s what CZ said:
“So right now in the US, it’s really interesting. We have multiple regulators fighting for jurisdiction over the industry, which is good in some ways, but it also causes other problems in a number of ways. It’s a bit confusing, but in most other countries this problem doesn’t exist. [Dans la plupart des autres pays, l’agence de régulation est assez claire, parfois [c’est] the central bank.
Occasionally, [il s’agit] of the securities market regulator. Sometimes it is a completely new regulator. So most regulators are trying to clarify the regulatory framework in their country which is very good … The United States is a bit unique in that it is a large country with multiple regulators and now it is not clear who controls this space.“