Crypto’s Richest Mogul Details What Could Trigger Bitcoin’s Next Massive Move
Binance CEO Changpeng Zhao says there are a myriad of factors that could potentially drive the next big rally for Bitcoin (BTC) and other crypto assets.
In a new interview on CNBC, the richest person in crypto says that various catalysts triggered the previous bull runs, and that people didn’t even realize that these would set off massive moves.
“No one has really predicted NFTs [non-fungible tokens]DeFi [decentralized finance], etc., who probably drove the last bull run. Before that in 2017, it was mainly ICOs [initial coin offerings]. Six months before these things happened, very few people could predict it.
Now the market is so much bigger. There are so many more applications in the space. I’m not sure which one, but I think all of these are moving in a positive direction.”
Zhao says the regulatory developments and economic situation could be favorable for crypto.
– The regulatory landscape seems to be quite good. Most countries adopt regulatory frameworks, they do not ban Bitcoin or cryptocurrencies. The macroeconomic situation will be high inflation, talk of recession, etc. All these things are driving adoption to Bitcoin, to crypto.”
The Binance CEO also explains why the crypto and stock markets are currently moving in the same direction.
“Logically, cryptocurrencies should move towards the stock market. In theory they should be negatively correlated, but today the cryptocurrency market is so small… When the stock market crashes, people want to make money. Today, most people who trade cryptocurrencies also trade stocks, so right now it’s positively correlated, which is illogical, but that’s just the way it is right now.”
He says he also finds the US regulatory situation strange as both the US Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) currently claim the right to oversee cryptocurrencies.
“Right now in the US it’s very interesting. We have multiple regulators fighting for jurisdiction over the industry, which is good in one way, which also causes other problems in different ways. It’s a bit unclear.
In most other countries this problem does not exist. Most other countries, their regulatory agencies are pretty clear. Sometimes it is the central bank. Sometimes it is the securities market regulator. Sometimes it’s a completely new regulator, so most regulators are trying to clarify regulatory frameworks in their countries, which is very positive. The US is a bit unique, and it’s a big country with multiple regulatory agencies, and now it’s unclear who controls the space.”
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Featured image: Shutterstock/estevez/Nerijus Juras
