“Bitcoin Has Been Really Stable,” Says Changpeng Zhao Binance CEO
July 20, 2020 2:20 pm
The CEO of crypto exchange Binance, Changpeng Zhao, states that Bitcoin will eventually break out of this $9,000–9,500 corridor but the token is “really stable” now. He isn’t sure what will cause Bitcoin to hit $10,000 again but has commented on the token’s recent stability.
In an interview on July 19, with Bloomberg Daybreak: CZ, commented on the cryptocurrency’s low volatility record. Bitcoin (BTC) has had very few big moves for weeks, with the token remaining between $9,000 and $9,500. BTC is priced at $9,175 at press time.
“I think sooner or later it’s going to break out,” CZ said. “But right now Bitcoin has been really stable. People have been calling it a stablecoin now.”
Misconceptions About Safe Havens
The Binance CEO, Changpeng Zhao, said that for the moment, Bitcoin was too correlated with traditional markets to be the safe-haven asset many investors hope it can be.
“It has a drag down effect, comparing the price of certain assets to floats adjacent to the Titanic, going down in a massive market crash. The stock market is probably a thousand times bigger than the crypto market. When that goes down, and a lot of people are losing a lot of money, many of those people who have crypto investments will want to convert those investments into cash.”–Changpeng Zhao, CEO of crypto exchange Binance
However, over the long haul, “the safe-haven properties of Bitcoin will come through overtime” the Binance CEO says.
Stability of Bitcoin
Changpeng Zhao’s observation on Bitcoin’s stability comes just a few days after the third anniversary of John McAfee, an eccentric cryptocurrency advocate and British-American entrepreneur, in a tweet called his own previous prediction of Bitcoin price hit a bullish $500,000 within three years a total “nonsense” and a joke. Adding that people who believed his “absurd” forecast should “wake up”.
McAfee used the whole North America continent GDP as a comparison reference to explain why his call was just a joke, saying that:
“If Bitcoin ever hit $1 mil, it’s market cap would be greater than the GDP of the entire North American Continent.”