Jumps after falls, according to Binance CEO By Investing.com



By Carjuan Cruz

Investing.com – After the current fall, there will be a rise, or recovery, at least hinted at the CEO of Binance, Changpeng Zhao, who showed a history of the main cryptocurrency, in which the volatility of the asset is reflected digital.

“Historically speaking, if you bought Bitcoin every time there was a ‘it’s dead’ headline, you would have done well,” said the manager, although he assured that the comment was not a buy recommendation.

The cryptocurrency has lost 70% of its value, since its maximum reached in November, standing at $20,631. But over the weekend it dropped to $17,600, a low it hadn’t seen since November 2020.

Indeed, this digital asset has shown great jumps after sharp falls, the most significant of which occurred in 2017 and 2013. However, those years did not present a macroeconomic adjustment as complicated as the current one.

In this 2022, the increase in interest rates and liquidity restrictions, inflationary pressures and problems in the supply chain, have hit the stock market hard. And risk aversion hits the fastest, highest-growing stocks and cryptocurrencies the hardest.

The war in Ukraine, and the closures in China due to new outbreaks of Covid, make the global scenario more difficult and intensify a feeling of caution among investors.

But in addition to these macroeconomic factors, other sector-specific events impacted sector confidence, such as the collapse of stablecoin TerraUSD and its sister Luna, and the solvency of cryptocurrency lender Celsius.

Source link

Leave a Comment