Binance CEO, Changpeng Zhao says Bitcoin has strong support near or at the $20,000 price level, and believes the crypto market is generally likely to see further adoption catalysed by the macroeconomic environment.
Speaking in an interview with ‘Squawk on the Street‘ on Thursday, the Binance chief noted that while no one can accurately predict the market – whether the next big move can be higher or lower – the $20k level offers a good buffer zone due to its psychological importance and the market cycle around it.
What next for Bitcoin?
Basically, noone can tell – it could go higher, or a retreat after relief bounce – but…
“Nobody really forecasted NFTs [and] DeFi, which probably drove the last bull run,” Zhao told CNBC, adding that even the 2017 bull market rode on the ICO (initial coin offering) boom. And more likely, the 2017 all-time high is proving the new bottom from where bulls could retreat to before springing higher.
Also, even though the crypto market has grown significantly and it’s not easy to tell which sector will drive the next bull run, growth all across the industry shows we are “moving in a positive direction.”
“The regulatory landscape is shaping to be quite well,” he added, with most countries and jurisdictions moving to adopt regulatory frameworks instead of undertaking outright bans on Bitcoin or cryptocurrencies.
These developments are key and can aid further growth in the industry, as well as buoy the next upside in prices, Zhao said.
According to the Binance CEO, a combination of macroeconomic situations, including high inflation and even talk of recession are all potential drivers of the next bull cycle. This week, Bitcoin rose sharply after the US Federal Reserve raised interest rates by 75 basis points, with BTC breaking above $24k on Thursday amid recession chatter.