The crypto markets experienced last Thursday, one of its largest one-day downward movements. Bitcoin led the massive sellout that left the benchmark index for digital systems to lows of $3,800 and tumbling and most of the big Altcoins crack into the abyss.
This led to the aggregate crypto-market of almost 100 billion dollars from its market capitalization wiped out, and went back within one Trading day of 225 billion dollars to 125 billion dollars.
Now the CEO of one of the largest crypto stock exchanges in the world, shares his thoughts about what was the true cause for this recent sale. And he stresses that Bitcoin, despite the recent pairing with the traditional markets still a safe haven.
Binance CEO compares recent Bitcoin decline with a “floating raft that is attached to the Titanic”
Many analysts and investors were disappointed that the Bitcoin went back in addition to the traditional markets, which makes his Status as a “safe port” appear questionable.
Changpeng Zhao, CEO and founder of Binance with the nickname “CZ”, – writes in a recent blog post about the exhaustion of this Thesis, and explains that He sees Bitcoin and other Kryptos still considered a safe investment, the intense turbulence in the world economy are just too much for the small market, to tolerate you.
He puts the recent decline in the crypto market with a raft of the same, which is attached to the sinking Titanic and claims that crypto-currencies eventually from the traditional market can decouple.
“Let’s say you take a “floating raft”, the works and helps to float in water. We assume that it is fixed to the Titanic while it sinks. Will bring this raft them to the surface? No, it is not. No longer is it the fact that the raft does not work? No, the floating properties of the raft still work.“
Here is the real reason why the crypto market crashed in the eyes of CZ is
CZ explained that the recent kapitulier was due to end closeout on the crypto market to two main factors.
First, he notes that the doomed crypto-investors are likely to be dropped due to the recent turmoil in the traditional markets out of their crypto-positions, creating immense selling pressure, which has continued, with falling prices.
Secondly, he notes that many investors have probably decided to sell their crypto holdings to capital release to pay, the rent and possible changes in their work situation due to the global instability to prepare.
Since all of these investors have already dropped out of the relatively small crypto market, it is very likely that a long-term low point is reached and traditional investors will be able to decouple received new crypto-positions, if Bitcoin and other digital assets from the traditional markets.