Saturday, June 25, 2022

Bitcoin could take years to recover from crash, says Binance boss

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Bitcoin may not break its $69,000 high for years following recent market crashes, Binance head said.

Changpeng Zhao, the founder of the largest cryptocurrency exchange, closed the prediction The guard after more than $2 trillion was wiped out from the entire cryptocurrency market.

Cryptocurrencies began to plummet when Terra’s UST stablecoin lost its peg to the dollar, causing its sister coin Luna to plummet in value by more than 99 percent. The cryptocurrency Celsius then fell, and others were taken along.

“I think with that price drop from the all time high of 68k to now 20k it’s probably going to be a while before we get back there. It will probably take a few months or a few years,” Mr. Zhao said, adding that “no one can predict the future.”

Bitcoin is currently trading at $20,490, a price considered “very low today,” Mr. Zhao said. “But you know, if you told people in 2018, 2019 that bitcoin will be 20,000 in 2022, they would be very happy. In 2018-19, bitcoin was $3,000, $6,000.”

He continued: “If you look at the floor [of bitcoin], at the moment it is higher than the last peak. So, normal or not, I think as the industry is still definitely growing, price fluctuations are normal.”

Many experts have predicted a “crypto winter” where big tech companies like Coinbase are withdrawing job vacancies despite making millions in profits.

Mr Zhao said some companies might struggle if they have to grow during the slump, but Binance, which has been banned from regulated financial activities in the UK as the Financial Conduct Authority, is still developing.

“Right now it definitely feels like a lot of projects are in a bind because once you hit an all-time high, all projects spend money like they’re always going to be at that all-time high. When it falls now, it feels like winter. But for projects that saved money, we’re still doing fine, we’re still hiring, we’re still growing.”

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