Changpeng Zhao, co-founder of the Binance cryptocurrency exchange, stated that the prolonged decline of the cryptocurrency market cannot be attributed to a single factor. He argues that the current situation is the result of a combination of several factors.
Zhao identified key reasons as international tensions, Bitcoin's characteristic four-year cycle, and the outflow of investor capital into artificial intelligence projects.
The main owner of the world's largest cryptocurrency exchange by trading volume recalled how Bitcoin reached a new all-time high of over $126,000 last October, before gradually losing half of its value. According to the businessman, the indicators of the leading cryptocurrency directly affect the stability of Binance. However, despite the deep correction of major cryptocurrencies, Zhao is confident that the sector will inevitably show growth.
“In the long term, the sector will develop. The demand for financial technologies will only increase, as the number of transactions will also rise, which means the sector will grow,” he said in an interview with CoinDesk.
Furthermore, Zhao praised the potential of prediction markets, noting their ability to improve event pricing and pricing accuracy due to additional capital inflow. He believes that speculative interest is inevitable in any financial market and plays an important role in ensuring their liquidity.
Previously, Changpeng Zhao called for stock markets to transition to blockchain and advised countries to issue their own stablecoins backed by national fiat currencies. He argued that this would enhance the efficiency of financial infrastructure and accelerate the development of the digital economy:
