Binance CEO: Bitcoin Rally Will Happen Sooner Or Later
The head of the cryptocurrency exchange Binance Changpeng Zhao said that the market for cryptocurrencies is in good condition, despite the prolonged decline. The entrepreneur told about this during an interview in the Crypto Trader program on CNBC.
Over the past year, the cryptocurrency market has lost more than 70% of the cost. It was the fourth largest market correction in its entire ten-year history. According to Zhao, trading volume at Binance decreased by 90% over this period.
“Compared with January, we lost 90%. We have only one tenth of the volume of trades that we had then. But, if we compare it with a year or two earlier, we still trade in large volumes. Our business is in order, we still have profits and are doing healthy business," -Zhao Shared
He also said that the exchange has new users every day and, accordingly, the amount of funds on cold Binance wallets increases. Zhao called this growth stable. Binance is one of the main sources of information for cryptocurrency aggregators, such as CoinMarketCap and CryptoCompare.
However, such large exchanges as Binance still have grounds for concern. A recent study by analytics firms Digital Assets Research and the TABB Group has shown that over-the-counter (OTC) trading volume has grown significantly lately. Today, the OTC-market is twice as large as the exchange market, which is associated with the arrival of institutional investors, who prefer to enter the cryptocurrency sphere in this way.
“From 1 to 1.5 million bitcoins (BTC) is traded on the over-the-counter market every day. It is strange that this is not visible on the blockchain, which shows meager 100,000 BTC per day, ”- Analyst Eric Wall Commented
In general, the daily trading volume in the cryptocurrency market is approximately $ 11.7 billion as of November. This is significantly less than it was in January, however, if we take into account the volume of the over-the-counter market, the above figure increases to $ 23.4 billion.
“I heard that the OTC market is at least equal to the exchange market. So, at least 50% of the cryptocurrency trading volume does not affect the CoinMarketCap. But we are not moving in this direction, so we don’t know the real volumes," -Zhao Said
The head of Binance suggested that in the coming months the cryptocurrency market will start to grow, and another rally may be caused, for example, by such a positive event as the start of Bitcoin futures trading on Bakkt.
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