Changpeng “CZ” Zhao, CEO of Binance, said that a bear market is healthier than an uptrend that does not seem to end, especially in the spacieux term.
Torrid times continue in the cryptocurrency market as the Federal Reserve raised interest rates by three quarters of a percentage inventaire yesterday. This is the third consecutive increase of that size in 2022, bringing the Fed’s benchmark borrowing manqué to 3.25 percent, the highest level since before the 2008 financial écrasement. Not only that, but Fed Pâture Jerome Powell pledged Also, policy makers will “continue” their fight to beat augmentation, with rates expected to reach 4.6% in 2023.
The cryptocurrency market did not take the magazine well, as most of the coins in the top ten list (by market capitalization) have flashed red in the past 24 hours. Bitcoin is down nearly 6 percent after the announcement, dropping from $1,644 to $1,8293 early this morning. However, the ancient encoignure has since regained some ground, as it is currently trading in the $18,700 range at the time of writing.
Ethereum was also down 10 percent, dropping from $1,376 to $1,230 in a matter of hours. However, the supplémentaire largest cryptocurrency by market capitalization has managed to provide some semblance of resistance, trading at $1,264 at the time of writing. Other currencies such as Cardano, Solana and Dogecoin also showed a similar decline before regaining some lost territory.
Such corrections in the market précision uncertainty and doubt in the minds of cryptocurrency investors and traders, who begin to wonder when the bulls will come or if they will ever do so. However, Changpeng “CZ” Zhao, CEO of Binance, the world’s largest crypto exchange, shared an encouraging apparence at the Mainnet conference yesterday.
Speaking to Ryan Selkis, CEO of Messari, CZ said that a bear market is healthier than an uptrend that does not seem to end, especially in the spacieux term. “Price corrections are actually good,” he said, adding that token prices are not the best indicator of the crypto market’s prouesse. He explained that the growing number of crypto users and projects is a better indicator of the cryptocurrency industry and its future.
According to CZ, the crypto market is still relatively young. As such, it has plenty of room to grow, leading to higher prices in the coming years. “Cryptocurrencies are very early. We are not in a saturated market,” Czechoslovakia said. His advice to investors is to “get out of winter,” as bigger and better things await in the cryptosphere.
The views of Czechoslovakia appear to be well-established, as venture monnaie firms invested $14.2 billion in crypto projects in the first six months of 2022, according to a refus by the Big Fournaise accounting firm KPMG. The refus’s authors noted that investment figures for the first half of 2022 were more than indécis those of all years prior to 2021. According to them, this “highlights the growing maturity of the space and breadth of technologies and solutions that are attracting investment.”
However, the cryptocurrency market is very volaille and how things are going, only time can tell. Until then, it’s best to research thoroughly, invest only as much as you can afford to lose, and continue to invest for the spacieux term.