According to the CEO of Binance, widespread cryptocurrency acceptance is driven by macroeconomic factors.
As per Changpeng Zhao, Bitcoin has strong support near or at the $20,000 price level. He believes the crypto market is generally likely to see further adoption catalyzed by the macroeconomic environment. [C]hangpeng [Z]Zhao says Bitcoin seems to have huge backing near or above the $20,000 price level.
The CEO of Binance mentioned in an interview that aired on Thursday’s episode of ‘Squawk on the Street’ that even though no one can correctly estimate the market – whether the following big move will be higher or lower – the $20,000 level provides a good buffer zone due to the psychological importance it carries as well as the market cycle that revolves around it.
Where will Bitcoin go from here?
Nobody knows for sure – it could go much higher or fall after a relief bounce.
“Nobody really projected NFTs [and] DeFi,” Zhao told CNBC, adding that even the bull market in 2017 rode on the ICO (initial coin offering) boom. “Nobody really forecasted NFTs [and] DeFi probably propelled the previous bull run.” In addition, it is more likely that the all-time high reached in 2017 is proving to be the new bottom from which bulls could retreat to before resuming their upward movement.
In addition, even though the cryptocurrency market has experienced substantial expansion and it is difficult to predict which sector will be the primary driver of the subsequent bull run, the expansion of the industry demonstrates that we are “heading in the right direction.”
“The regulatory environment is shaping up to be fairly good,” he added, with most governments and jurisdictions opting to implement regulatory frameworks rather than undertaking a complete ban on Bitcoin or cryptocurrencies. “The regulatory landscape is shaping up to be very well,” he said.
According to Zhao, these improvements are significant and can potentially promote additional expansion in the business and buoy the next upward in pricing.
The Chief Executive Officer of Binance believes that the next bull cycle might be triggered by several different macroeconomic factors, including high inflation and even discussions of the possibility of a recession.
This week, the US Federal Reserve increased interest rates by 75 basis points, which led to a strong increase in Bitcoin’s price. On Thursday, Bitcoin broke above $24,000 despite rumors of an impending recession.
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