Changpeng Zhao, Binance CEO says Bitcoin is supported at or close to the $20,000 level and believes that crypto will see more adoption driven by macroeconomic conditions.
Speaking in interview with ‘Squawk on the Street’ on Thursday, the Binance chief noted that while no one can accurately predict the market – whether the next big move can be higher or lower – the $20k level offers a good buffer zone due to its psychological importance and the market cycle around it.
What is next for Bitcoin
Basically, noone can tell – it could go higher, or a retreat after relief bounce – but…
“Nobody really forecasted NFTs [and] DeFi, which probably drove the last bull run,” Zhao told CNBC, adding that even the 2017 bull market rode on the ICO (initial coin offering) boom. It is more likely that the 2017 all-time peak is the bottom, where bulls can retreat before rising higher.
Also, even though the crypto market has grown significantly and it’s not easy to tell which sector will drive the next bull run, growth all across the industry shows we are “moving in a positive direction.”
“The regulatory landscape is shaping to be quite well,” he added, with most countries and jurisdictions moving to adopt regulatory frameworks instead of undertaking outright bans on Bitcoin or cryptocurrencies.
Zhao explained that these developments are important and can help further growth in the sector as well as boost the next upside in price.
Binance CEO said that a combination macroeconomic situation, including high inflation, and even talk about recession, are potential drivers for the next bull run. Bitcoin’s price rose sharply this week after the US Federal Reserve raised its interest rates by 75 basis point. Bitcoin soared to $24k on Thursday, amid rumours of recession.