Binance co-founder and CEO Changpeng Zhao (known as “CZ”) shared his thoughts on the cryptocurrency market.
CZ made his comments during an interview with Carl Quintanilla, co-host of the CNBC show Squawk on the Street.
When asked by Carl Quintanilla why $20k seems like a support level for bitcoin, CZ replied:
“No one knows for sure, but the most recent peak in 2017 was around $20K and has been below that amount for two years and has been above that amount. So I think that’s probably one of the reasons why there’s a little psychological barrier here.”
Carl Quintanilla then asked what would be the catalyst for the next big bitcoin move and CZ replied:
“I don’t think anyone can predict very accurately since no one actually predicted NFTs, DeFi, etc., which probably led to the latest bull run. before that, in 2017, it was mostly ICOs. Six months before this happens, few can foresee it.
So next… there are still so many applications in space, I don’t know which one, but I think all these things are moving in a positive direction. The regulatory environment has worked reasonably well – most countries have adopted a regulatory framework; they don’t ban… cryptocurrencies. The macroeconomic environment… favors the adoption of… cryptocurrencies.”
Then someone asked CZ if the US is in a recession and why the crypto market can avoid a deeper crisis, and he replied:
“Honestly, logically, cryptocurrencies should move in inverse proportion to the stock market. Theoretically, they should be negatively correlated, but today the cryptocurrency market is so small that every time the stock market drops… people want to save cash and today most people who trade cryptocurrencies also trade stocks. So right now it’s positively correlated, which is counter-intuitive, but that’s the way it is right now.”
As for the crypto industry’s opinion on the regulatory climate in the US, here’s what CZ had to say:
“So it’s really interesting in the United States right now. We have several regulators vying for jurisdiction over the industry, which is good on the one hand, but also causes other problems in different ways. It’s a little fuzzy, but in most other countries this problem doesn’t exist. [Dans la plupart des autres pays, l’agence de régulation est assez claire, parfois [c’est] central bank.
Occasionally, [il s’agit] securities market regulator. Sometimes it’s a brand new regulator. So most regulators are trying to clarify the regulatory framework in their country, which is very positive… The United States is a bit unique in that it’s a big country with a lot of regulators, and now it’s not clear who controls that space.”