The founder of the largest cryptocurrency exchange Binance, Changpeng Zhao (CZ), shared his views on the future of the cryptocurrency market during an AMA (Ask Me Anything) session for the Chinese community. Zhao paid special attention to the trading of meme coins, Bitcoin, and the influence of U.S. politics, which he believes could break traditional market cycles. The full transcript is provided by WuBlockchain.
From the perspective of classic cycles in bitcoin, Zhao sees the possibility of a bear market. But he also pointed to the likelihood of continued growth.
"But this year may see deviations. The most likely reason is that U.S. policy is currently leaning in favor of bitcoin. Additionally, the U.S. president may initiate a series of measures to support the stock market ahead of the midterm elections... I think this year could be a supercycle," Zhao speculates.
In response to a question about the target of $200,000 for one bitcoin, the founder of Binance explained that it's just a matter of time. However, he refused to specify concrete timelines or a bullish trend for the next 3-4 months.
At the same time, Zhao is confident that a new surge in altcoin prices in the future is inevitable, as the market 'cannot exist solely based on bitcoin serving as a reserve currency.' He also refused to provide price predictions for the Binance-developed cryptocurrency BNB, but expressed confidence in the expansion of the ecosystem and community.
On memecoins as a 'global casino'
CZ paid special attention to the high-risk segment of memecoins, acknowledging systemic problems and the imbalance between professional players and retail traders who are unaware of the risks.
"Some projects [in memecoins] are supported by professional teams that quickly buy up the token and drive up the price. No one forces you to buy a specific coin, and risk management is extremely important here and needs to be understood."
Zhao notes that coins backed by venture capital (VC) carry no less risk. Funds need to lock in profits within limited time frames, so at the peak, retail investors often become the main buyers.
