It\u2019s safe to say CZ is bullish on bitcoin and crypto\u2019s future. Changpeng Zhao visited CNBC\u2019s 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\u2019s calming to hear a leader of the industry saying them. Especially in this fear-ridden stage of the cycle we\u2019re in.<\/p>\n
.@binance CEO @cz_binance: The macroeconomics situation will be high inflation, the talk about recession\u2026all of those things drive adoption into #Bitcoin.@CNBC pic.twitter.com\/EP8OHwPeAa<\/p>\n
\u2014 Squawk on the Street (@SquawkStreet) July 28, 2022<\/p>\n\n
Notice that even though Binance\u2019s business is dependent on altcoins\u2019 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.\u00a0<\/p>\n
In any case, let\u2019s analyze what Binance\u2019s CEO thinks about the current market conditions and the future of bitcoin and crypto.<\/p>\n
What Did CZ Squawked On US National TV?<\/p>\n
The first thing the interviewer was interested in was the way that bitcoin bulls have defended the \u201c20Kish\u201d line. According to CZ, that was \u201cthe last peak\u201d so there\u2019s a \u201cpsychological barrier\u201d there. So far, bitcoin\u2019s price had never go lower than the previous cycle\u2019s all-time high. This time it was different, probably because of Tesla\u2019s paper hands and the Terra collapse. However, the market ended up defending the 20K line.<\/p>\n
The interviewer then asked about other factors, like the increase in money supply or the bitcoin\u2019s correlation to Nasdaq. According to CZ, those are two relevant factors, but in the end \u201cit\u2019s a mass psychology market\u201d and the last ATH is the barrier. It\u2019s only fair that we quote Binance Academy for an explanation of the psychology of market cycles:<\/p>\n
\u201cIn short, market sentiment is the overall feeling that investors and traders have regarding the price action of an asset. When the market\u2019s 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.\u201d<\/p>\n
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:<\/p>\n
\u201cLast week, the indicator\u2019s value had risen up to even 34 as the coin\u2019s price saw a recovery rally. However, as the run ended and the crypto once again slumped down, so did the sentiment among the investors.<\/p>\n
The report notes that this trend indicates participants in the BTC (and wider crypto) market believe that this recent rally was just a fakeout.\u201d<\/p>\n\n
BNB price chart on BinanceUS | Source: BNB\/USD on TradingView.com
\nWhat\u2019s the next catalyst?<\/p>\n
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. \u201cNobody really forecasted NFTs, DeFi, etc. Which probably drove the last bullrun.\u201d And in 2017, ICOs seemed to be the catalyst. \u201cSix months before those things happened, very few people can forecast it.\u201d<\/p>\n
In bull markets, exercise risk management. <\/p>\n
If everything went to 0, will your life still be ok? If no, you invested too much. Reduce it by half and ask again.<\/p>\n
Don’t over invest. (Not financial advice)<\/p>\n
\u2014 CZ Binance (@cz_binance) July 29, 2022<\/p>\n\n
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\u2019s hard not to be bullish in an environment like this, even if the market is still fearful about the prices.<\/p>\n
The last phrase is the funniest, and it goes into the current state of the world. \u201cThe macroeconomic situation, there\u2019s going to be high inflation, the talk about recession, etc. All of those things drive adoption into bitcoin\u2026 into crypto.\u201d<\/p>\n
Featured Image: CZ, screenshot from the video | Charts by TradingView<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
It\u2019s safe to say CZ is bullish on bitcoin and crypto\u2019s future. Changpeng Zhao visited CNBC\u2019s 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\u2019s calming to hear a leader of the industry saying them. Especially in this fear-ridden stage of the cycle we\u2019re in.<\/p>\n
.@binance CEO @cz_binance: The macroeconomics situation will be high inflation, the talk about recession\u2026all of those things drive adoption into #Bitcoin.@CNBC pic.twitter.com\/EP8OHwPeAa<\/p>\n
\u2014 Squawk on the Street (@SquawkStreet) July 28, 2022<\/p>\n
Notice that even though Binance\u2019s business is dependent on altcoins\u2019 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.\u00a0<\/p>\n
In any case, let\u2019s analyze what Binance\u2019s CEO thinks about the current market conditions and the future of bitcoin and crypto.<\/p>\n
What Did CZ Squawked On US National TV?<\/p>\n
The first thing the interviewer was interested in was the way that bitcoin bulls have defended the \u201c20Kish\u201d line. According to CZ, that was \u201cthe last peak\u201d so there\u2019s a \u201cpsychological barrier\u201d there. So far, bitcoin\u2019s price had never go lower than the previous cycle\u2019s all-time high. This time it was different, probably because of Tesla\u2019s paper hands and the Terra collapse. However, the market ended up defending the 20K line.<\/p>\n
The interviewer then asked about other factors, like the increase in money supply or the bitcoin\u2019s correlation to Nasdaq. According to CZ, those are two relevant factors, but in the end \u201cit\u2019s a mass psychology market\u201d and the last ATH is the barrier. It\u2019s only fair that we quote Binance Academy for an explanation of the psychology of market cycles:<\/p>\n
\u201cIn short, market sentiment is the overall feeling that investors and traders have regarding the price action of an asset. When the market\u2019s 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.\u201d<\/p>\n
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:<\/p>\n
\u201cLast week, the indicator\u2019s value had risen up to even 34 as the coin\u2019s price saw a recovery rally. However, as the run ended and the crypto once again slumped down, so did the sentiment among the investors.<\/p>\n
The report notes that this trend indicates participants in the BTC (and wider crypto) market believe that this recent rally was just a fakeout.\u201d<\/p>\n
BNB price chart on BinanceUS | Source: BNB\/USD on TradingView.com
\nWhat\u2019s the next catalyst?<\/p>\n
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. \u201cNobody really forecasted NFTs, DeFi, etc. Which probably drove the last bullrun.\u201d And in 2017, ICOs seemed to be the catalyst. \u201cSix months before those things happened, very few people can forecast it.\u201d<\/p>\n
In bull markets, exercise risk management. <\/p>\n
If everything went to 0, will your life still be ok? If no, you invested too much. Reduce it by half and ask again.<\/p>\n
Don’t over invest. (Not financial advice)<\/p>\n
\u2014 CZ Binance (@cz_binance) July 29, 2022<\/p>\n
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\u2019s hard not to be bullish in an environment like this, even if the market is still fearful about the prices.<\/p>\n
The last phrase is the funniest, and it goes into the current state of the world. \u201cThe macroeconomic situation, there\u2019s going to be high inflation, the talk about recession, etc. All of those things drive adoption into bitcoin\u2026 into crypto.\u201d<\/p>\n
Featured Image: CZ, screenshot from the video | Charts by TradingView<\/p>\n
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