The crypto winter is shaking the industry and every business is doing their best to survive. For Changpeng Zhao (CZ), the effort to be deployed will have to be spread over the longer term than previously thought.
A crisis that has come to stay
The crypto winter is about a month ago and the industry is already counting the companies that have fallen. Cryptocurrencies remain volatile, and forecasts are going strong, announcing a $ 100,000 Bitcoin as much as a dead Bitcoin. The time already seems long, but it may be that the phenomenon is set to last much longer than expected.
The interview of the newspaper Assets, Binance CEO Changpeng Zhao made an ominous prediction about the end of the crisis. For him, however, the latter is not a problem as the exchange platform has solid means of survival. At Binance, no budget cuts and wave of layoffs. On the contrary, CZ remains calm and is in favor of a major recruitment campaign to be ready when the situation arises. According to him, the crypto winter is giving the industry the opportunity to get rid of its bad students, and the best has not yet come if enough effort is made.
That said, this period of greatness for the cryptosphere may still be long awaited. CZ actually believes that the crisis we are experiencing right now may actually be a cycle in itself. Like all those that have been tested by Bitcoin, this one will not deviate from the rule: the rule of lasting four years. The crypto winter can therefore last until 2026.
I’m not saying it’s catastrophic. It’s bad. I’m not quite sure yet. Historically, all cycles have been four years. That said, history cannot predict the future. But when this catastrophe occurs, there is also a possibility.
Excerpt from the interview with Changpeng Zhao made by Fortune
However, other bitcoin cycles seem to invalidate this hypothesis.
The cyclicality of Bitcoin is a well-known phenomenon in the cryptosphere. Every four years, the little orange piece suffers an impressive fall … before rising brilliantly. While previous disasters were regretted in 2014 and 2018, the crisis came exactly in 2022.
Yet Bitcoin’s last major crash lasts far from four years. In fact, they engulfed the industry for well over a year. Time will tell whether the crypto winter will last that long or whether Changpeng Zhao’s predictions turned out to be correct.
For now, despite the disaster triggered by the crash, there does not seem to be any indication that the current crisis will last four years. However, we know that it will take several months to disappear. So confusion on the part of Changpeng Zhao or lack of justification? The newspaper Assets did not report any arguments of the contractor.
One thing remains true, though: The crypto winter of 2022 seems to be following the same steps as the previous ones … so far. According to the ABC Exchange, each crypto bear market is characterized by four stages, the first of which is the fall of Bitcoin. If we are to believe in the unfolding, Ethereum should be able to pick up speed in the coming months.
The course of events will therefore be able to indicate whether this crisis remains as the others, or whether we, like CZ, have reason to believe that it has come to stay.
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