Summary
- Changpeng Zhao said the current crypto market correction is within a normal four-year cycle and is not unusual compared with past drawdowns of as much as 80%%.
- He said Bitcoin is still trading at about five times its level from four years ago and that the lows of each cycle have continued to rise, which is why he has always maintained a long-term view.
- He said the crypto industry’s fundamentals have improved significantly, helped by the US push to build a regulatory framework, along with spot ETFs, stablecoins, real-world asset (RWA) tokenization, and institutional investor inflows.
Forecast Trend Report by Period
Binance founder Changpeng Zhao said the recent slump in the cryptocurrency market remains within a predictable range.
Speaking on Galaxy’s YouTube channel on June 20, Zhao said the current market correction falls within the bounds of a normal four-year cycle. A decline of about 50% in the current cycle is not unusual compared with pullbacks of as much as 80% in previous cycles.
Bitcoin is still trading at about five times its level from four years ago, he said, adding that the low point of each cycle has also been higher than the one before it. He added that he has always maintained a long-term view.
Zhao said the biggest reason this four-year cycle differs from earlier ones is a shift in the stance of the US government. While the US previously moved to suppress the crypto industry, it is now actively pushing to build a regulatory framework, a change that he said is also influencing policy in other countries.
He also cited growth in spot exchange-traded funds, stablecoins and real-world asset tokenization, along with increased inflows from institutional investors, as factors strengthening the industry’s foundation. The industry’s fundamentals have improved significantly compared with past cycles, he added.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
