CZ believes this bear market is good news for the market! In the world of crypto, there are voices that carry more weight than others. Among these voices with international resonance is Changpeng Zhao (CZ), the CEO of the Binance platform. Asked about the bear market that has been raging for months, the boss of the world's number one exchange believes that this is an essential step. And that this once again reflects the youth of the market.
The bear market: healthy according to CZ!
Interviewed by video during the Mainnet conference, which is currently being held from September 21 to 23, the CEO of the Binance platform gave his opinion on the current market for digital assets. He believes that the current bear market around Bitcoin and altcoins is even quite healthy, urging the crowd in attendance to ' stay out the winter '.
It was during a conversation with Ryan Selkis, CEO of Messari, the company that organizes this conference each year, that CZ clarified his thoughts. He estimates that the bear market will be likely to purge the market and that a crypto market cycle has a “normal” length of 4 years.
If these bearish phases seem logical, CZ goes even further since he believes that this bearish phase also depends on the magnitude of the future rise.
"Price corrections are actually good. Investors should not look to token prices as a sign of how the crypto market is doing."
According to CZ, other variables are more interesting to judge the health of the crypto market. Starting with the number of people buying digital assets.
And on this point, although the trend is slowing down, the number of owners of digital assets continues to increase all over the world. The explosion in the number of blockchains, as well as the rise of web-oriented initiatives3, are also variables that he considers more interesting.
The market is still young!
During his talk, CZ connected the fact that the bear market is healthy to its relative youth. According to him, despite the strong expansion of the last few months, there would still be a lot of room to develop.
"Crypto is so young. We are not in a saturated market."
And the market data seems to prove him right. Factually, the figures tend to show that despite the bear market, the number of projects continues to thicken. There would now be over 22,000 digital assets available.
The intervention of the boss of Binance was also an opportunity to return to the issue of regulation. A point on which he also remains very optimistic. He has just reacted enthusiastically to the revelations about the MiCA bill. If it was initially to drastically limit the use of stablecoins, the idea was abandoned.
At least for stablecoins denominated in currencies other than the euro. On the regulatory file, he clarified during the conference that the platform and the market were moving in the right direction. CZ also emphasized the importance of communication between different players and regulators around the world.
On the future of the sector and the regulations, CZ also expressed its opinion. Mentioning that he believes governments could create a new class of securities for blockchain-based assets.
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