Binance CEO, Changpeng Zhao recent tweet would definitely bring some relief to such investors whose patience might soon run out as 2018 has not been a great year for crypto bulls as 2017 was. A lot of people who were here in for quick gains have burnt their fingers and the investors who are still holding on are expecting prices to rise and the glory days to return.
Bear market could soon come to an end
The Crypto exchange authoritarian, Changpeng Zhao who is the person at the helm of the largest cryptocurrency market believes the ongoing cryptocurrency bear market could soon come to an end. This prediction came when CZ commented on data in a recent tweet that showed Binance’s exchange token, Binance Coin (BNB), as the only top-50 cryptocurrency still positive in 2018.
wow, honored. Don’t worry, I think the cycle should be complete soon, given the mainstream news coverage of events. Understand blockchain and crypto is not going away, other than the non-believer speculators that was shaken out (they will come back), adoption is increasing. https://t.co/lI3BkMRbt9
— CZ (not giving crypto away) (@cz_binance) August 23, 2018
Top 50 Market Caps from 1/1/2018$BNB is now the only positive one left in 2018
Over 90% are below -50%
Will they continue to go lower? pic.twitter.com/HfD7Z8YPIs
— Cryptokita (@cryptokita) August 23, 2018
Binance Coin (BNB) is the only coin in 2018 has performed relatively well, up around 42% this year while the great majority of coins are now down 80 to 90% from their peak all-time highs.
Since hitting an all-time high of $24.91 on January 12, BNB has retreated around 50% to $12.52. While in any other market this would seem like a total collapse, BNB has actually outperformed every other major cryptocurrency YTD. This is especially notable as the losses occurred in the initial sell-off to start the year.
BNB hit a bottom of $6.03 in late January but has steadily risen over 300% on the back of a number of major announcements by the exchange. Most recently, Binance revealed that it had acquired Trust Wallet, a mobile cryptocurrency wallet that supports Ethereum and over 20,000 different Ethereum based tokens, across the ERC-20, ERC-223 and ERC-721 standards.
Binance CZ comments coincide with eToro CEO Yoni Assia comments
In a recent interview, eToro CEO Yoni Assia said that the trading platform had seen consistent demand in recent months from retail investors for Bitcoin and other cryptocurrencies. Assia, who oversees one of the biggest online trading platforms in the global finance sector with more than 8 million users, said that market correction was necessary in order for the crypto market and industry to mature, establishing a foundation for future rallies. He emphasized that the demand for Bitcoin and cryptocurrencies as an emerging asset class has not declined even after the 78 percent correction in the valuation of the crypto market.
If both comments are conjoined and read together markets are surely turning the tide and its retail investors only that are doing the trick. Once the hurdle of Bitcoin ETF is over, either way in approval or denial, the institutional investors which are still on sidelines will start flowing. And subsequently, once players like ICE start their federally regulated ecosystem for cryptocurrencies, the investment would have a multiplier effect.
The position in which Changpeng Zhao and Assia sit, their view towards the future is much clearer and wider for people and hence their comment makes cannot be taken as a passing one.
Do you think the analysis by CZ about the bear market is correct or it is a passing comment to keep the markets at peace? Do let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.