Changpeng Zhao Believes Bearish Trend Is More Beneficial for Crypto Market
In the long term, a bearish trend may prove more beneficial to the digital currency industry than a seemingly endlessly rising market. The head made this statement of Binance, Changpeng Zhao.
He believes that investors should not regard crypto asset quotes as indicators of the state of the industry. Zhao believes the focus should be on the number of users using digital currencies and the number of different Web3 projects.
According to the crypto enthusiast, the market is going through an early stage and is “not saturated” yet. At the same time, Zhao pointed to significant progress in creating a legislative framework. For example, he mentioned the initiative of the American authorities to introduce cryptocurrencies into existing financial structures — the “securities or goods” system.
“There will be some cryptocurrencies that look like securities and maybe look like commodities or currencies, but bitcoin does all three,” he said.
On Wednesday, September 21, the Fed released a statement about plans to raise the key rate by 75 bp. up to 3–3.25% per annum. The cost of bitcoin immediately rose from $19,000 to $19,700. BTC is currently trading at around $19,100, according to Coinmarketcap.
Against current events, the latest Chainalysis report is positive information. It states that states from the region of Central and South Asia and Oceania raised more than $900 billion in digital currency from last July to June of this.
Thus, the CSAO region has become the number three market in terms of cryptocurrency volume in the world. Interestingly, India received $172 billion in digital assets.
Then come to Thailand, Vietnam, Australia, and Singapore. Each of these countries received more than $100 billion.
The study says that states from Central Asia, such as Uzbekistan, and island countries, such as the Maldives, are less interested in crypto assets.