Despite BTC price moving between $9,000 and $9,500 recently, the CEO of Binance said Bitcoin is stable and the traditional market has a “drag down effect” on it.
Changpeng Zhao (CZ), CEO and founder of Binance, commented on the Bitcoin price movement in an interview with Bloomberg Daybreak: Asia. Recently, the price of Bitcoin has not been increasing like investors expected as the coin has been trading at less than $10,000 for a while. In the past month, the price has been between $8,975.53 and $9,680.37. Regardless, CEO Zhao said that the coin is “really stable now.”
He stated:
“I think sooner or later it’s going to break out. But right now, Bitcoin has been really stable. People have been calling it a stablecoin now.”
Many investors see Bitcoin as a safe-haven asset for when traditional markets plunge. However, the Binance CEO has revealed that the traditional market has a “drag down effect’ on Bitcoin.
“The stock market is probably a thousand times bigger than the crypto market. When that goes down, and a lot of people are losing a lot of money, many of those people who have crypto investments will want to convert those investments into cash…the safe haven properties of Bitcoin will come through over time.”
For a long time, there have been several unmet predictions about the price of Bitcoin. Earlier in 2017, John McAfee, founder of McAfee software, said in a tweet that he would “eat his own dick” if Bitcoin hits “500k $ within 3 years.” However, Bitcoin has not been close to McAfee’s prediction of $500,000 in the last three years.
Despite the recent Twitter hack to promote a Bitcoin scam, Bitcoin did not rise above $9,500. On a possible price catalyst for the king coin, Zhao says he’s unsure what could drive Bitcoin to $10,000.
Binance CEO Reacts to Recent Twitter Hack Related to Bitcoin
Reacting to the Twitter hack, Zhao said it was “net positive” for the cryptocurrency. The CEO believes that Bitcoin gained more recognition because many verified accounts posted and commented about the coin.
Looking on the positive side, I believe this unfortunate incident is a net positive for crypto. It raises awareness for the need for stronger security on internet platforms, something we, the industry players, have been asking for for a while.
— CZ Binance (@cz_binance) July 17, 2020
According to Zhao, most platforms do not have effective security measures. He referred to Google as “probably the strongest in terms of account security.” He added:
“Most platforms today aren’t equipped to deal with crypto securely. Twitter is targeted first because it has a more active crypto community. There are plenty of ‘scams wanting crypto’ on other platforms. YouTube/Google Ads, Facebook, etc.”
The recent Twitter hack to run Bitcoin giveaways is not the first online crypto scam in 2020. In January, Czech Youtuber Adam Jicha tweeted about a hack on his gaming channel, with his name changed to Changpeng Zhao. The hacker then ran a livestream called “BINANCELIVE: interview with Binance CEO, Announce BTC Giveaway.” After three days, the YouTuber tweeted again, calling the attention of the online video-sharing platform.
Also, in April, Ripple accused YouTube of profiting from an XRP giveaway on the platform by aiding and abetting the scammers. Brad Garlinghouse, the CEO of Ripple, said:
“YouTube’s inertia is indicative of an industry-wide problem of lack of accountability. Victims are forced to jump through hoops to report these scams, and oftentimes, that doesn’t even work….”
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
