Binance CEO: Bitcoin price crash 60% is not the fault of corona virus

Binance CEO:

The corona virus is only a spark that sparked the ongoing global economic crisis, not the whole cause, the CEO of Binance stated.

In one post on his blog on March 20, Changpeng Zhao - still known by the cryptocurrency world as "CZ", argued that coronaviruses showed the world economy to be too weak.

CZ: The economy "should be stronger"

Asked if he felt the conditions this year were different from the global financial crisis (GFC) in 2008, CZ wrote:

“There was no global pandemic in 2008. But I believe that coronavirus is only an agent, not a root cause. Our economy should be stronger, at least strong enough to survive a shock. ”

CZ's comments come in the context that Bitcoin is increasingly detached from the poor performance of traditional markets. After a historic decline in the previous week - at the same time the stock market was "bloodbath", this week the king has seen a staggering rebound when at some point it rose to 90. %.

Since then, the BTC / USD pair has cooled and is currently trading around 7% in the past 24 hours. However, unlike the old system, Bitcoin was not "broken", CZ said.

At some point, investors will stop hoarding cash - a fact that has solidified the dollar during the corona virus raging, and instead began to expand its portfolio. surname. And Bitcoin will be one of the destinations of wealth.

“Has everyone bought more Bitcoin? Not yet, in most cases. Many of them are still panicking because of toilet paper, ”CZ said.

“These changes take time to propagate in the economy. Changes cannot happen immediately because of the large number of participants. ”

A "safe haven"?

Binance's opinion echoed that of Andreas Antonopoulos - a cryptocurrency educator who correctly predicted the impact of the financial crisis on Bitcoin just a few months ago. As Toiyeubitcoin reported, Antonopoulos said that Bitcoin will initially plummet, as investors will get rid of the stock crash, but then it will recover.

John Bollinger, the creator of the Bollinger Bands volatility indicator, shares the same view, arguing that investors "sell what they can" in such cases. However, the pace of the Bitcoin price decline caught him off guard.

“Bitcoin has fallen victim to the COVID-19 panic. I really don't think it can work as a safe haven in the near future. ”

For CZ, however, it is clear that Bitcoin will act as a safe haven in the future, as its supply is fixed and cannot be manipulated as fiat currency.

"Don't expect Bitcoin to go up when the Dow Jones falls or vice versa," he said.

“It is not a perfectly inversely correlated product. If you want that, you should only shorten Dow Jones futures. ”

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According to CoinTelegraph
Translated by ToiYeuBitcoin

Nguyen Diep

My name is Nguyen Manh Cuong. I was born in a poor village in Ba Vi district, HA NOI province - windy and sunny land. Currently

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