In an interview with CNBC, Binance CEO Changpeng Zhao said that the situation in the crypto industry is now better than nine months ago when BTC and the leading altcoins traded at record levels.
He believes that crypto attracted a lot of non-believers who are most likely just speculators. This should not have happened on a larger scale, the Binance boss said. Therefore, a correction was inevitable.
In early November, the crypto market capitalization hit almost $3 trillion, and bitcoin skyrocketed as high as $69,000.
Later, however, the digital asset collapsed due to unfavorable macroeconomic conditions. Ethereum has just increased above $1,700.
What's happening?
Things got worse for the crypto market when Terra collapsed and set off market contagion. Causing a domino effect, it took down other big players such as Three Arrows Capital. Zhao is convinced that the crypto market should only attract those who believe in this technology. "A little bit of a reset is healthy to be very frank," he noted.
Now that the market has crashed, investors see its long-term potential. Zhao has recently downplayed Tesla's bitcoin U-turn, saying the e-car maker's decision to sell bitcoins worth $936 million was just a drop in the ocean compared to overall trading volume, U.Today reported.