Binance boss says Bitcoin could stay below $69,000 for two years | bitcoin

According to the managing director of the world’s largest cryptocurrency exchange, Bitcoin could remain below its historic high of $69,000 for the next two years after the latest digital asset market crash.

Changpeng Zhao, founder and CEO of Binance, said four years ago that if people had been told that Bitcoin would trade at $20,000 in 2022, they “would have been very happy”. The underlying crypto-asset symbolically dropped below this level over the weekend. The move that represents a write-off of earnings for many long-term bitcoin holders.

“I think it will probably take some time for it to bounce back, given this price drop from 68,000 to an all-time high. It will probably take a few months or a few years,” Zhao told the Guardian. He can’t,” he added.

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Today we think 20,000 is too low. But you know, in 2018, 2019, they would be very happy if you told people that Bitcoin will hit 20k in 2022. In 2018/19 bitcoin was $3,000, $6,000.

On Wednesday, Bitcoin traded at $20,491 according to CoinDesk, reaching levels not seen since late 2020 over the weekend.

When asked if he sees current fluctuations in bitcoin and crypto prices as “normal,” as he explained in an interview earlier this month, he replied, “If you look at the bottom [of bitcoin], currently higher than the last peak. So, normal or not, I think price fluctuations are normal as the industry certainly continues to grow.”

Bitcoin and other cryptocurrencies have been impacted by a variety of factors, following stock market crashes and interest rate hikes by central banks associated with rising inflation. Raising interest rates, a path the US, UK and Swiss central banks took last week, could make risky assets less attractive. For example, certain technology stocks, whose prices can withstand strong future earnings expectations over many years, may be relatively less attractive than the immediate fixed returns on investments such as bonds, which become more attractive in a higher lending rate environment. .

However, the woes of the crypto market are also linked to problems specific to digital assets. Last month, the failure of terra, a supposedly stablecoin whose value should be pegged to the dollar, has shaken faith in cryptocurrencies. It was followed last week by Celsius Network, a bank-like business that offers high rates of return on cryptocurrency deposits and has stopped customers from withdrawing funds. Then, Three Arrows Capital, a hedge fund that makes expensive bets on the crypto markets, admitted that it was in trouble.

Zhao declined to comment on a Bloomberg report that the US financial watchdog was investigating whether Binance had violated securities rules when it launched its first coin offering (a form of fundraising for companies) of the BNB token in 2017.

“We are talking to all regulators around the world. “They ask us questions, we answer them with or without an investigation,” he said.

Binance was banned from any regulated activity in the UK by the Financial Conduct Authority, which said in June last year that the firm could not be “effectively regulated”.

Binance temporarily halted withdrawals last Monday due to what it calls a “stuck on-chain transaction.” When asked whether the withdrawal freeze is related to broader crypto market issues, Zhao replied, “I don’t think it’s pure coincidence. In market turmoil, there are more transactions on a blockchain and most of the blockchain nodes are failing.”

Cryptocurrency is the term for a group of digital assets that share the same basic structure as bitcoin: a public “blockchain” that records ownership without any central authority in control. A node is a device that validates transactions in the blockchain network.

When asked if the digital asset market is approaching another “crypto winter” – a phrase coined during a market crash in 2017/18 – Zhao said that some projects may run into problems because they were designed while the market was at its latest peak. The current value of the entire crypto market is just under $1 trillion compared to $3 trillion in November last year, with bitcoin hitting an all-time high of around $69,000 during the same period.

“Right now, I definitely feel like a lot of projects are stuck because once you hit an all-time high, all projects spend money as if they will always be at an all-time high. So now it feels like it’s winter when it drops. But we’re still good for cash-saving projects. , we are still recruiting, we are still growing.”

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