Changpeng Zhao, CEO of Binance, is the voice of reason when he says that bitcoin may take a few months to a couple of years to get back to all-time-highs. However, he also thinks that the current price of just above $20k, is very low.
CZ told the UK-based Guardian ePaper that he believes that the $20k price is one that investors in 2018 would have been very happy to see four years later. Even though bitcoin has dipped below this price to $17,600 around a week ago, it has since stabilised, and the bulls are trying to reverse the trend.
“I think given this price drop, from the all-time high of 68k to 20k now, it will probably take a while to get back. It probably will take a few months or a couple of years,”
“20k we think is very low today. But you know, in 2018, 2019, if you told people bitcoin will be 20k in 2022, they would be very happy. In 2018/19, bitcoin was $3,000, $6,000.”
CZ defended his comment in an interview earlier this month, when he said that the bitcoin price was “normal”. He stated that bitcoin’s price was above the last market peak in 2017, and that as the crypto industry was still growing, price volatility was to be expected.
When asked about the investigation by the US regulatory authorities on whether Binance had broken securities laws when it launched its ICO back in 2017, CZ replied that his company continually answered questions from regulatory authorities from all over the world.
On the subject of whether he thought the industry was in a “crypto winter”, he responded that for a lot of the crypto projects that launched around the $68k peak, it could possibly be quite difficult for them. He stated:
“Right now, it definitely feels many projects are in a bind because once you get to an all-time high, all the projects spend money like they were always going to be at that all-time high. So now when it drops it feels like during the winter. But for projects that have conserved cash, we’re still fine, we’re still hiring, we’re still growing.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.