CZ, the CEO of Binance, recently made significant statements during an AMA session on Twitter held on July 5th. He discussed the possibility of BlackRock entering the cryptocurrency market, provided updates on legal actions against exchanges, and shared his thoughts on preparing for the next price surge.
CZ explained that Bitcoin’s price has historically followed a four-year cycle of price increases, and he believes this trend will continue. While acknowledging that the future is uncertain, Zhao emphasized the upcoming Bitcoin halving event in 2024 and declared that 2025 is the most likely year for the next market rally. He stated, “The year following the Bitcoin halving is usually a year of price increases.”
— Binance (@binance) July 5, 2023
When asked about his concerns regarding BlackRock’s recent involvement in the Bitcoin ETF market, CZ welcomed the idea and stated that it would be “extremely beneficial” for the cryptocurrency industry.
Since BlackRock submitted its application on June 15th, many have expressed concerns that the intentions of traditional finance companies contradict the decentralized nature of Bitcoin as a currency network.
Zhao dismissed worries that BlackRock could capture Binance’s market share in the future, describing the overlap between their respective customer bases as “minimal.” He stated, “Anyone who enters the cryptocurrency space that is not in cryptocurrencies today will attract more people into cryptocurrencies. Will they compete with our existing users? Yes, maybe a little bit. But honestly, look at our user base. The overlap is minimal.”
Zhao explained that the increasing interest from institutions and the upcoming Bitcoin halving event are the main reasons why Binance wants to “prepare for higher trading volumes” in the next eighteen months.
Zhao’s comments came just hours after BlackRock’s CEO, Larry Fink, praised Bitcoin as a “global asset,” stating that it could be used as a hedge against inflation and the devaluation of certain currencies.
During the Twitter Space session, Zhao was also asked about the regulatory actions taken against Binance. While he admitted that he couldn’t provide specific details, Zhao stated that he and Binance are seeking the “most reasonable solution that both sides can agree upon.”
The statements made by CZ during the AMA session indicate Binance’s optimism about the future of the cryptocurrency market and its willingness to adapt to regulatory challenges. The potential entry of BlackRock into the cryptocurrency space is seen as a positive development, further validating the industry and attracting more users. However, the CEO remains confident in Binance’s user base and downplays concerns about potential competition.
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