According to Changpeng Zhao, the combination of large business interest and favorable regulation can lead to an unusually long and sustainable growth of the crypto market.
"Typically, Bitcoin follows four-year cycles, but I believe that this year, given the favorable pro-cryptocurrency policy in the USA, it will reach new historical highs, deviating from its typical four-year model. I have a very strong feeling about this," announced the entrepreneur.
Investors should prepare for a new reality where cryptocurrency volatility will gradually decrease as large capital comes in, Zhao said. In the new conditions, Bitcoin ceases to be 'just digital gold,' becoming the foundation of an economy that is not dependent on short-term market conditions, said the co-founder of Binance.
Against the backdrop of declining trust in traditional currencies, the decentralized nature of Bitcoin with its mathematically limited issuance makes the first cryptocurrency an unparalleled tool for long-term risk hedging, Zhao believes. The crypto market has outgrown the stage of blindly following trends, and this transition will create the necessary layer of liquidity that will keep it from deep drawdowns even during price corrections, suggested the owner of the largest cryptocurrency exchange.
Earlier, Ark Invest CEO Cathie Wood stated that Bitcoin is starting to emerge from the current, weakest phase of the four-year market cycle. According to cycle theory, after the halving, which reduces the reward for miners by half, the price of the first cryptocurrency rises and then sharply falls.
