Changpeng Zhao urged to think about investing in BTC

2 min readJul 4, 2022

CEO of Binance Changpeng Zhao said that the current downturn in the crypto market is a good time to buy the main digital currency in the long term. According to the entrepreneur, investors with extra money should consider acquiring a significant amount of BTC amid a bear market.

Zhao recalled that at the end of June, MicroStrategy bought 480 bitcoins for a total of approximately $10 million at an average rate of $20,817 per coin. The company continues to support the first cryptocurrency, despite the fact that its loss due to the market fall reached $1.2 billion.

The CEO of Binance believes that if traders can hold their positions during the current bearish sentiment, their investment will multiply when a bullish trend sets in.

“Cryptocurrencies are not going anywhere. If we predict the development of the industry for five, ten and even twenty years, more applications will be developed, and more people will come to the industry,” Zhao said.

At the same time, he believes that the short-term prospects of the crypto industry remain in question, since in the near future it may recover or fall even more. The businessman also pointed out that rising inflation is becoming a prerequisite for people to accept digital currencies.

The CEO of Binance is positive about DeFi, believing that in the next 5–10 years, decentralized platforms are able to bypass centralized services, although the latter will play a significant role in the industry. But the bulk of the trade will be in DeFi, Zhao believes.

And the CEO of Pantera Capital, Dan Morehead, expressed the opinion that in the short term, the dependence of digital currencies on traditional assets will decrease. The entrepreneur also believes that the growth of base interest rates will provoke a fall in conservative financial markets, and the prices of crypto assets may well show a significant increase.

“Obviously, interest rates will affect bonds and stocks, and then other assets like real estate. There are some asset classes, such as cryptocurrencies, that should not be associated with traditional markets. So far, the correlation of cryptocurrencies with risky assets like stocks is very high, but I can easily imagine that within a year, stocks and bonds will fall, real estate will fall, but the cryptocurrency will rise strongly and will trade on its own rules. Just like gold or commodities like corn and soybeans. Everything is moving in that direction,” Morehead said.

The entrepreneur is confident that digital assets are still quite attractive to investors. He noted that earlier there was a serious growth of the market, and now there is a significant decline. However, there have already been 5 similar cycles, which does not prevent Pantera Capital from investing in crypto assets for about 10 years.