The crypto market in a yet another commando style saw one of its largest single-day downwards movement last Thursday, with Bitcoin leading a massive sell off which sent the benchmark of its digital asset booling down to as lows of $3,800. This action subsequently caused the most major altcoins to also crater on a downward forcibly.
This indeed led to the market crash that saw it lost about a $100 billion off its market capitalization, which declined from $225 billion to $125 billion during a one-day trading period.
Lately, the CEO of Binance, one of the world’s largest crypto exchanges today, opining his thoughts on what the real cause could be concerning this recent sell-off States that this decline could be termed as a “swimming float attached to the Titanic”
At every point, all analysts who have stakes in crypto currency regularly do not feel happy when there is an issue of price decline but analysts and investors were disappointed to see Bitcoin decline oligolistically alongside the traditional markets, seemingly invalidating its status as a “safe haven” asset.
Nevertheless, Changpeng Zhao – the CEO and founder of Binance who often goes by the nickname “CZ” – spoke about the invalidation of this narrative in a recent blog post, explaining that he still views Bitcoin and other cryptos as safe-haven assets, but that the intense turbulence in the global economy was simply too much for the small market to tolerate.
His equation of the crypto market’s recent decline to a “swimming float” being attached to the Titanic as it sinks, further asserts that going on to claim that eventually, cryptocurrencies will be able to recoup from the traditional markets as pundits want.
Here’s the real reason the crypto market crashed in CZ’s eyes:
The recent turbulence in the marketplace. Such turbulence whose reason may vary from the stay at home syndrome effected across world governments which does not allow people to do their traditional businesses across board.
Secondly, he notes that many investors likely turned to sell off their crypto holdings in order to free up capital which will help them to pay rent and prepare for potential changed or situations due to the global instability.
Because all of these investors have already exited the relatively small crypto market, it is a strong possibility that a long-term bottom is in and that traditional investors may begin entering fresh positions in crypto if Bitcoin and other digital assets are able to begin decoupling from the traditional markets.
Bitcoin, currently ranked #1 by market cap, is up 4.21% over the past 24 hours. BTC has a market cap of $114.74B with a 24 hour volume of $40.46B
Source Info: Cryptoworldnews.com