The bear market has capsized, even sunk, several ships in the vast crypto ocean. While some projects had to file for bankruptcy, others saw their value revised to more than half of their ATH. Such is the case with bitcoin, ether and other altcoins. As a corollary, the bear market has claimed many victims among investors, collateral damage. In Changpeng Zhao’s eyes, all of this is quite ” normal “. Because bear claws will certainly boost the cryptocurrency market in the long run.
Does CZ expect an imminent bull run?
For Changpeng Zhao, the bear market is a must for a crypto market still “ young “. ” Price corrections are a good thing “, he said during a recent exchange with Ryan Selkis, CEO of Messari at last Wednesday’s Mainnet conference.
The end of a market cycle that lasted more than 4 years is the most normal according to the CEO of Binance. Nothing more logical and more healthy than the crisis we are currently going through. Moreover, an endless bull run would not fail to negatively impact the entire crypto ecosystem.
As advice, he offered:
- not to rely on current token prices to describe the situation of the cryptocurrency market;
- to focus instead on the number of users who buy and use these assets;
- and highlight emerging blockchains and Web3 projects.
Aren’t we witnessing an all-time high in the number of addresses with more than 1 BTC lately? Wasn’t the Ethereum Merge successful despite the crisis? Apparently Shiba Inu’s Shiba Eternity and his Shib: The Metaverse weren’t held back by this one. The list is still long.
” Crypto is so young. We are not in a saturated market “, specified the man who continues to hire, to multiply partnerships with companies specialized in withdrawal and payment cards, etc.
Only positive in the bear market?
From the perspective of a visionary like Changpeng Zhao, the bear market cleans up the cryptocurrency industry. Because it is not only conducive to the emergence of innovative projects in the sector, but it also accelerates the regulation of these assets. This is particularly the case of the United States regulators (SEC and CFTC) who do not fail to debate their classification as “ securities ” Where ” goods “.
” In fact, we have seen a lot of positive progress in regulatory frameworks. […] There are cryptocurrencies that are similar to securities, and maybe similar to commodities, and similar to currencies, but bitcoin does all three CZ pointed out.
In other words, despite these advances, there is still a long way to go for regulators. Because some current legal frameworks seem inappropriate. The CEO of Binance therefore invites governments to create, among other things, a new category of assets based on the blockchain. The latter being ” a new asset class in itself and also a new data transfer technology “.
In any case, the optimism displayed by CZ concerning the bear market is sure to rekindle the flame in the hearts of crypto investors. By evoking the 4-year cycle for the market, isn’t it preparing us for an imminent end to the crisis?
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