Expert outlines where the next growth phase for the cryptocurrency market will start
Brett Harrison, head of US crypto exchange FTX, compared the current situation in the crypto market to previous cycles – according to Harrison, it’s hard to tell the difference between the two. Yes, Bitcoin is going through a bad time right now and could even be teetering on the brink of a major new plunge. However, as in the past, the cryptosphere will manage to overcome all obstacles and show impressive growth again, the expert believes. We tell you more about his point of view.
When to expect a bull run for cryptocurrency
To recap, over the past few weeks, the value of the major cryptocurrency has fallen even below $18,000 for a while. The so-called “perfect storm” – a combination of negative factors in both macroeconomics and the crypto-industry itself – is to blame.
Bitcoin exchange rate in the last 3 months
In a recent interview with CNBC, Harrison said that this situation is nothing new for already experienced crypto investors. In his opinion, the trigger for a new bull run will be venture capital firms, which are already actively accumulating Bitcoin after its impressive drawdown. Here’s a relevant quote from the expert, cited by CryptoPotato.
A huge amount of venture capital is still pouring into cryptocurrencies, which we believe will strengthen the ecosystem as these investment firms roll out new products and new services, ultimately bringing back the former glory of the cryptocurrency world.
FTX US head Brett Harris
Harrison also highlighted the nature of Bitcoin and the fact that central banks and governments do not and cannot control crypto. It has become a store of value that can be “safely and instantly” transferred anywhere in the world. And this statement is indeed true – no traditional financial instrument has similar properties when fully decentralised.
On topic: The founder of a famous crypto fund has named the main condition for Bitcoin's growth. What is it?
Much of the contribution to the steady downtrend on the chart has been made by large cryptocurrency companies, which have found themselves on the verge of bankruptcy due to their ill-conceived policies. Earlier, US Securities and Exchange Commission member Hester Pearce said that such firms should be “let die” rather than trying to save them. Most surprisingly, the CEO of major cryptocurrency exchange Binance, Changpen Zhao, agrees with Pearce’s opinion.
According to Cointelegraph sources, Zhao said on his blog that firms with poor management, unreliable products and disgusting treatment of customers simply don’t deserve financial help. Here’s Changpen’s retort.
In short, these are just “bad” projects. They should not be bailed out. Unfortunately, some of these “bad” projects have large numbers of users, often acquired through bloated incentives, creative marketing or pure pyramid schemes. Also, in any industry there are always more failed projects than successful ones. It is hoped that there are few failures and many successes, but you get the idea. Helping them is pointless.
That is, Chanpen made it clear that not all cryptocurrencies should be given a second chance. This is especially true for those organisations that do not bring much value to the blockchain industry and essentially become popular solely through the bull run of the coin market.
Binance CEO Changpen Zhao
But the head of cryptocurrency exchange FTX, Sam Bankman-Fried, has a different opinion on the matter. He also made an interesting statement the day before: his team is willing to provide financial assistance even at a loss to “keep troubled cryptocurrency companies afloat”. The billionaire said that he does not want a complete collapse of the crypto market and is ready to allocate funds in the required amount.
By the way, Zhao may still support some firms. He said that Binance could be supported by specific players in the market whose problems “can be solved” or whose fundamental potential is “high enough”. And so, in general, Chanpen is not giving up on the idea of financial assistance. Such sounds logical: after all, Binance has sufficient funds, as confirmed by the recent announcement of its willingness to hire 2,000 new employees.
We believe that the current stage of cryptocurrency market downturn in general is indeed similar to previous similar periods. However, there is a difference in the form of economic conditions and geopolitical situation around the world. While it is difficult to predict the behavior of digital assets in the current situation, coins have never faced anything like this before.
What do you think about it? Share your opinion in our millionaires’ cryptochat. There we discuss other important news for the blockchain world.
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