Changpeng Zhao, CEO of the giant Bitcoin exchange Binance, stated that the coronavirus outbreak is not just the cause of the global economic crisis. The famous CEO also revealed the true cause of the recent Bitcoin and altcoin collapse.
Binance CEO explains the real cause of big Bitcoin and altcoin collapse
The last Thursday was arguably one of the worst days of Bitcoin, and cryptocurrency saw a 50% loss. The worst part of the decline was that the cryptocurrency suddenly slumped from $ 7,850 to $ 3,500 over a 24-hour period. Unsurprisingly, many investors suffered serious losses during this move. Leading leveraged Bitcoin exchange BitMEX reported that about $ 1 billion of Bitcoin positions (mostly long positions) were liquidated during this major collapse.
The main thing to wonder after this harsh selloff was what pushed the crypto market so low. And more importantly, what's next for Bitcoin and other cryptocurrencies ... A blog post by Changpeng "CZ" Zhao, CEO of Binance, the world's largest crypto exchange, sheds light on these questions. According to Changpeng Zhao, the real reason for this was largely panic sales and running to investors seeking liquidity from all over the world. Binance CEO added:
THE SHARE OF EACH INVESTORS ON THE MARKET IS NOT KNOWN BY EVERYONE. IT CHANGES WITH TIME. THEIR RELATIVE POWER OR BELIEF IN THE SALE / PURCHASE IS DYNAMIC. WHEN THE EXCHANGE COMES OUT, IT WILL GO TO FEEL HIGHER HUMAN FINANCIAL CRISIS TO A HIGHER LEVEL AND FOR THIS REASON, ITS A STRONGEST IMPACT TO SELL CRYPTO MONEY IN A SHORT TERM.
Changpeng Zhao: Now the accumulated funds will flow back to the market soon!
In the continuation of his statements, Changpeng Zhao stated that the coronavirus outbreak is not the main cause of the current global economic collapse, and that the outbreak is a spark that sparked the crisis. In addition, Binance CEO said that the coronavirus outbreak also revealed how weak the world economy is. Binance CEO added:
A VACCINE WILL BE DEVELOPED AT THE END. NOW NO COUNTRIES HAVE A LARGE FOOD AND A FOOD PROBLEM. PEOPLE WHO MAKE CASH WILL UNDERSTAND THAT THERE ARE NOT TO HAVE TO COLLECT, AND WILL RETURN THESE FUNDS TO INVESTMENT.
According to the Binance CEO, the current global economic order is doomed to disappear with the latest crisis. According to Changpeng Zhao, the fact that its supply is stable and not manipulated like fiat coins clearly shows that Bitcoin will be treated as a "safe haven" asset in the future.