Binance’s CZ thinks crypto market is much healthier with BTC around $20K

Chaopeng Zao (CZ), CEO of cryptocurrency exchange giant Binance CNBC Here he argued that the market is much healthier under the current winter conditions, as only crypto followers remain in the field.

He said:

“Frankly, a little bit of a reset is healthy. […] Cryptography has attracted many unbelievers in space. They were just speculators, and probably so. “

In November 2021, the market capitalization of cryptocurrencies reached a record high of $ 3 trillion, while Bitcoin reached $ 69,000. After the coldest winter devastation to date, Bitcoin approached $ 24,000 on July 28, and the crypto market barely regained $ 1 trillion in market capitalization.

CZ added:

“In fact, I think the industry is much healthier than it was when Bitcoin was $ 68,000.”

Purification of the market

CZ mentioned the crash of Terra, which led to the collapse of the domino effect of the sphere and defeated giants such as 3AC and Celsius. However, CZ tackled the failure from a long-term perspective, saying that such an overswing would cleanse the market from non-believers.

He explained that when Bitcoin was trading for about $ 68,000, many non-believers entered the space on a large scale in pursuit of rapid profits. He said:

“”[Speculators entering the market] It should not occur on a large scale. When it happens on a large scale, it means the market is over, [high] hot. Of course, it will be fixed after a while. “

According to CZ, the crypto market needs to attract only tech followers. As the bear market shakes off non-believers, the market is much healthier, CZ said. Those who know the value and understand how to use technology can now enter the space for innovation.

Celebrity agrees

Prominent crypto executives have made similar comments to CZ about winter conditions as Terra’s disaster crossed a cliff and overturned the market.

For example, Ripple CEO Brad Garlinghouse said the market has over 19,000 currencies, too many to create a healthy environment. He made this comment in early June 2022, stating that winter conditions would shake off projects that do not provide real value to the market. Therefore, at the end of winter, the market is left with projects that provide solutions to real problems.

Around the same time, FTX US President Brett Harrison, Polygon CEO Mikhai Robyerick, and Circle CEO Jeremy Aller agreed with Garlinghouse.

Traditional investor billionaire Mark Cuban made similar comments on the June 16 cryptocurrency winter situation. Cuba mentioned the market hype just before winter came and said it didn’t matter if it was in stock or cryptocurrency. All businesses gained without a solid business plan will disappear. He said:

“favorite [Warren] Buffett says, “When the tide goes down, you can see who is swimming naked.”

On another occasion, Blockworks co-founder Jason Yanowitz posted a thread on his Twitter account explaining the stages of the bear market. His thread mentioned the “dead” stage before the market recovered again. He said the third step was to make people want to leave the space. What remains in a stagnant environment leads to true innovation and is a true winner of cryptography.