Binance CEO CZ said on Friday that the recent drop in BTC and altcoin prices is a good time to save.
CZ says bear market is ‘time to buy at discount’
Speaking during his Bankless podcast, CZ said that investors with extra cash should consider buying more crypto in a bear market. CZ also describes this as “a discounted time to buy.”
CZ’s BTC statements garnered the likes of Michael Saylor and Nayib Bukele
Binance CEO has hailed the likes of Michael Saylor, who recently bought Bitcoin (BTC) after the price crash, and Nayib Bukele from El Salvador. According to CZ, most of the market veterans have had to go through at least one bear cycle where people made fun of them. Bought and held in a bear market in 2014/2015 (when BTC fell to $200) or 2018/2019 ($3,000) are now well off, as we covered in our analytics.com analysis.
Meanwhile, Nayib Bukele tweeted on July 1 that the country bought 80 Bitcoins at $19,000. Later, he tweeted, “Bitcoin will come. Thank you for selling it cheap.” The total cost of the transaction was around $1.52 million.
CZ also gave advice to traders. He said that if crypto investors can withstand the bear market, they will be in profits in the next bull run:
In the long run, the industry survives. There are more applications developed. There are more people in the industry. If we look at five, ten, twenty-year horizons, the market will grow even more.
However, CZ says the short-term outlook remains uncertain. At the same time, he stated that the markets could recover or fall further in the coming days.
What kind of bear market will there be for BTC and altcoins?
CZ says the bear market could be part of a four-year cycle. He also thinks it indicates prolonged weakness in crypto prices. But he sees rising inflation pushing people to accept cryptocurrencies.
CZ also advised businesses to hold cash for at least 10 years to address market weakness. Binance CEO also states that his exchange has enough reserves to withstand the winter.
CZ sees DeFi as the future
The Binance CEO also said that he expects decentralized exchanges to eventually surpass their centralized counterparts. CZ expects such a scenario to occur within the next five to ten years. While we expect centralized exchanges to still play a role in the market, a large volume will be realized through DeFi. He also considers Bitcoin the most decentralized currency.
In this regard, CZ said that Binance does not want to be a bank or “Facebook”. He added that the exchange aims to eventually become like Google and provides a set of tools for Web3.
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