Binance CEO, Changpeng Zhao says Bitcoin has strong support near or at the $20,000 price level, and believes the crypto market is normally more likely to see further adoption catalysed by the macroeconomic environment.
Speaking within aninterview with Squawk on the road on Thursday, the Binance chief noted that while no-one can accurately predict the marketplace if the next big move could be higher or lower the $20k level supplies a good buffer zone because of its psychological importance and the marketplace cycle around it.
What next for Bitcoin?
Basically, noone can tell it might go higher, or perhaps a retreat after relief bounce but
Nobody really forecasted NFTs [and] DeFi, which probably drove the final bull run, Zhao told CNBC, adding that even the 2017 bull market rode on the ICO (initial coin offering) boom. And much more likely, the 2017 all-time high is proving the brand new bottom from where bulls could retreat to before springing higher.
Also, despite the fact that the crypto market is continuing to grow significantly and its own not easy to inform which sector will drive another bull run, growth all over the shows we have been moving in a confident direction.
The regulatory landscape is shaping to be quite nicely, he added, with most countries and jurisdictions moving to look at regulatory frameworks rather than undertaking outright bans on Bitcoin or cryptocurrencies.
These developments are fundamental and may aid further growth in the market, in addition to buoy another upside in prices, Zhao said.
Based on the Binance CEO, a variety of macroeconomic situations, including high inflation and also talk of recession are potential drivers of another bull cycle. This week, Bitcoin rose sharply following the US Federal Reserve raised interest levels by 75 basis points, with BTC breaking above $24k on Thursday amid recession chatter.