Binance’s CZ: High Inflation And Recession Fears Will Drive Bitcoin Adoption
30 Juli 2022 - 03:53AM
NEWSBTC
It’s safe to say CZ is bullish on bitcoin and crypto’s future.
Changpeng Zhao visited CNBC’s Squawk on the Street and flipped the
prevalent bearish narrative on its head. In less than 2 minutes.
Most of the things CZ said are based on common sense and a basic
understanding of market forces, but still, it’s calming to hear a
leader of the industry saying them. Especially in this fear-ridden
stage of the cycle we’re in. .@binance CEO @cz_binance: The
macroeconomics situation will be high inflation, the talk about
recession…all of those things drive adoption into #Bitcoin.@CNBC
pic.twitter.com/EP8OHwPeAa — Squawk on the Street (@SquawkStreet)
July 28, 2022 Notice that even though Binance’s business is
dependent on altcoins’ performance, especially BNB, CZ makes a
clear distinction between bitcoin and crypto in general. On the
other hand, even though the interview is about bitcoin, CZ sneaks
crypto here and there. In any case, let’s analyze what
Binance’s CEO thinks about the current market conditions and the
future of bitcoin and crypto. What Did CZ Squawked On US National
TV? The first thing the interviewer was interested in was the way
that bitcoin bulls have defended the “20Kish” line. According to
CZ, that was “the last peak” so there’s a “psychological barrier”
there. So far, bitcoin’s price had never go lower than the previous
cycle’s all-time high. This time it was different, probably because
of Tesla’s paper hands and the Terra collapse. However, the market
ended up defending the 20K line. The interviewer then asked about
other factors, like the increase in money supply or bitcoin’s
correlation to Nasdaq. According to CZ, those are two relevant
factors, but in the end “it’s a mass psychology market” and the
last ATH is the barrier. It’s only fair that we quote Binance
Academy for an explanation of the psychology of market cycles: “In
short, market sentiment is the overall feeling that investors and
traders have regarding the price action of an asset. When the
market’s sentiment is positive, and prices are rising continuously,
there is said to be a bullish trend (often referred to as a bull
market). The opposite is called a bear market, when there is an
ongoing decline in prices.” Recently, as we regularly do here at
NewsBTC, we checked on the famed fear and greed index for insights
into the current market sentiment. This is what we found: “Last
week, the indicator’s value had risen up to even 34 as the coin’s
price saw a recovery rally. However, as the run ended and the
crypto once again slumped down, so did the sentiment among the
investors. The report notes that this trend indicates participants
in the BTC (and wider crypto) market believe that this recent rally
was just a fakeout.” BNB price chart on BinanceUS | Source: BNB/USD
on TradingView.com What’s the next catalyst? Back to the interview,
the next question was about what factor could catapult bitcoin and
crypto into their next chapter. Cautiously, CZ said that no one can
forecast that accurately. “Nobody really forecasted NFTs, DeFi,
etc. Which probably drove the last bullrun.” And in 2017, ICOs
seemed to be the catalyst. “Six months before those things
happened, very few people can forecast it.” In bull markets,
exercise risk management. If everything went to 0, will your life
still be ok? If no, you invested too much. Reduce it by half and
ask again. Don't over invest. (Not financial advice) — CZ 🔶 Binance
(@cz_binance) July 29, 2022 Then and only then, CZ speculated. He
thinks that the market is so much bigger this time around, with so
many new applications being developed. The whole space is moving in
a positive direction, with most countries adopting regulatory
frameworks instead of banning bitcoin and cryptocurrencies. It’s
hard not to be bullish in an environment like this, even if the
market is still fearful about the prices. The last phrase is the
funniest, and it goes into the current state of the world. “The
macroeconomic situation, there’s going to be high inflation, the
talk about recession, etc. All of those things drive adoption into
bitcoin… into crypto.” Featured Image: CZ, screenshot from the
video | Charts by TradingView
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