Note that the collapse of the cryptocurrency market has been going on since late autumn 2021. That’s when Bitcoin set its historical high at $69,000, followed by records of other popular coins.

And while the duration of the collapse blurs its magnitude, the collapse of the digital asset market over the past year has been very tangible. For clarity, here is a table of the change in coin values from November 15, 2021 to today.

Changes in cryptocurrency exchange rates since November 15, 2021

Many cryptocurrencies, including Bitcoin and Etherium, have lost 70 percent of their price, while some others have lost even more. However, Changpen Zhao doesn’t see anything wrong with what’s happening: after all, this has happened more than once before.

Why cryptocurrencies crashed

Zhao called the four-year cycle of the crypto market a “normal phenomenon,” with a drop in the price of digital assets that fits within that timeframe being more acceptable than “perpetual growth.” In the current situation, investors should not get too hung up on just the value of coins; understanding the long-term development of the market is much more important.


As a reminder, cryptocurrency market cycles are indeed tentatively invested in four years. In other words, there is both a period of growth and a full-blown collapse during this timeframe. As an example, we can recall the peak of the penultimate bull run for Bitcoin in December 2017 and the last one in November 2021.

Many in the industry believe this is due to the halving of Bitcoin, which also happens about every four years. However, this is likely to be a trivial coincidence, and the decline in new BTC issuance is not particularly affecting the market: after all, more than 91 per cent of all possible Bitcoins are already in circulation.


Bitcoin supply situation

According to Decrypt’s sources, the parameters of this development are the number of active buyers and users of cryptocurrencies, as well as the rate of development of Web3. Chanpen said that the crypto market is still at an “early stage” in its history, so it has plenty of room to grow. Here’s his rejoinder.

Crypto is still in its infancy. We’re not in an oversaturated market yet.

That is, Chanpen believes that the digital asset industry has not yet become mainstream, as it has with traditional finance. Accordingly, the niche has plenty of potential for growth.

Binance CEO Changpen Zhao

The head of Binance remains optimistic. According to him, the only thing left for investors to do now is to “survive the winter” – a reference to the term “cryptozymes”, which often refers to a prolonged decline in the coin market. Among other positive developments, Zhao noted the willingness of agencies close to many governments around the world to create the infrastructure to regulate the crypto market. He continues.

We are indeed seeing a lot of progress in creating a regulatory framework for cryptocurrencies. There will be some cryptocurrencies that are similar to securities and perhaps also similar to commodities and currency, but Bitcoin serves all three functions.

As a reminder, the day before, the White House report on the prospects of regulating the crypto market was released in the US. Although the community met it with a wave of criticism, it is already somehow positive news: after all, the government is discussing the future of digital assets at a high level and is ready to take an active part in the smooth development of the sphere.

😈 YOU CAN FIND MORE INTERESTING INFORMATION ON US AT YANDEX.ZEN!

The latest public discussion on crypto in the US government took place this Wednesday during an oversight hearing held by the House Financial Services Committee. The meeting was attended by CEOs of major US banks, including JPMorgan Chase CEO Jamie Dimon. Dimon himself has publicly voiced his criticism of the crypto market on many occasions in the past.

This time, he did not back down from his pessimistic statements, Cointelegraph reported. One of the members’ questions concerned Dimon’s activism regarding crypto, and more specifically, what is stopping him from using it more. Jamie stressed that he sees value in blockchain, decentralised finance, smart contracts and “tokens that do something”. However, the vast majority of tokens are allegedly “more like pyramid schemes”.

JPMorgan CEO Jamie Dimon

That said, Dimon sees nothing wrong with stabelcoins, as long as they are properly regulated. This was his response to a question about his banker’s opinion on the StableCoin bill currently being considered. Overall, the JPMorgan CEO’s opinion is not as radical as it was a few years ago – he refrained from directly attacking it, that is, he didn’t call Bitcoin a “fraud”.

Despite Dimon’s views, JPMorgan is pushing the research and use of blockchain technology. Back in October 2020, the financial giant launched its own JPM Coin stackcoin, the first cryptocurrency backed by a US bank, which was aimed at improving the efficiency of payments.

A week after the coin’s launch, the bank launched a new blockchain division, Onyx. The platform has since been used by large institutional clients for round-the-clock global payments.


We believe that the alternating cycles of growth and collapse are normal and allow the blockchain industry to evolve and find new uses. Yet at the peak of market growth in 2021, the niche was predominantly dogged by tokens, and now there is no such thing happening because there is no demand. This means that in this timeframe those developers who create something important and more relevant are active.


Read about other interesting news in our millionaires cryptochat. There we will discuss other important news that affects everyone’s investment portfolio.