Binance CEO Changpeng 'CZ' Zhao said on Wednesday that he believed a bear market is good for crypto. After all, it wouldn't be very healthy for the crypto cycle to just continue in an upwards trend.
Ross Mac breaks down CZ's comments in light of his warning earlier this summer that crypto may have to bundle up and settle in for a crypto winter that is far from over.
Full Transcript Below:
ROSS MAC: Is there such a thing as a healthy bear market? Well, I guess if you have the liquidity and look at it as a buying opportunity, then I guess so…and Binance CEO Zhao seems to think so. At a conference earlier this week, he said that the crypto cycle that we've just been through is normal, and that a bear market following that cycle is healthy in comparison to a crypto cycle that never actually stops going up. He does believe that the market is still early, encouraging investors to ride out the winter. Now this is obviously easier said than done, as his company is one of the only few to withstand the downturn. While some competitors are laying off employees or in some cases going bankrupt, Binance is actually hiring and trying to buy the assets of some failed companies. In fact, Binance is in the midst of a bidding war with FTX over Voyager’s bankrupt assets. Now as a reminder, Zhao did say earlier this summer that the crypto winter was far from over and warned that it was 'bad' so only time will tell how healthy this bear market may be.
I'm Ross Mac and that was the Crypto Minute on TheStreet.